Housing New Zealand has settled the country’s largest single insurance claim – $NZ320 million ($261 million) for damage to public housing in the Canterbury earthquakes.

Four local insurers led by Vero and 23 in Europe are involved in the payment announced by Housing Minister Nick Smith on Friday.

The settlement on 5559 damaged houses will shorten the repair program from five to three years, Dr Smith says.

“The negotiations were complex and challenging. They took several months to complete and involved not only our lead New Zealand insurer Vero but other New Zealand co-insurers, London insurers and Lloyd’s of London and insurance broker Aon.”

After the September 2010 earthquake Housing New Zealand could not obtain private insurance for the renewal period from October 2011 to October last year, so the Government arranged cover with the Earthquake Commission.

The commission claim is about $NZ5 million to $NZ10 million ($4.1 million to $8.2 million), Dr Smith says.