Companies in the collapsed HIH group continue to pay out to creditors and are now closed to new claims.

HIH became the country’s largest corporate collapse when it went broke in 2001 and its 82 companies were put into liquidation. 

Liquidator McGrathNicol is administering schemes of arrangements for eight of the Australian companies.

Its annual reports to creditors say 53 company liquidations have been finalised, with another due next month. 

That will leave 28 Australian subsidiaries to be liquidated, of which 10 are FAI Insurance companies.

Final claims had to be made by September 2 last year.

Australian creditors of HIH Casualty & General have received 39.97 cents in the dollar, and administrators estimate the final payment to all creditors will be 31-47%, depending on intergroup cross claims.

The company had a $1.86 billion deficit at June 30.

HIH Underwriting and Insurance (HIH U&I) paid $11.7 million to the Asbestos Injuries Compensation Fund during the year for claims against building products manufacturer James Hardie relating to a facultative reinsurance arrangement.

So far $19.1 million has been paid to the fund.

Creditors are likely to get 29-35 cents in the dollar, but there are cross guarantees between HIH companies that complicate the administration.

HIH U&I had a deficit of $374 million at June 30, with a liability of $469.29 million from other companies in the cross-guarantee group.

FAI creditors could receive a payout of 11-71%, with Australian creditors at the highest end of the payment. The business had a deficit of $618.78 million at June 30.

FAI General Insurance is facing a $162 million claim from other group companies, which is being disputed. It expects a 60-68% payout and has a $717.85 million deficit.

CIC Insurance estimates a total payout of 65-91% and has a $198.33 million deficit. It has total liabilities of $634.17 million but also holds assets of $435.58 million.

Two HIH companies ended the financial year without a deficit.

FAI Reinsurances had net assets of $6.61 million at June 30. It paid claims in full in 2011 but has received claims after that date.

World Marine Insurance paid claims in full during the year and has net assets of $21.37 million.

FAI Traders made a first payment to creditors of 10% during the year and expects to make another payment this year.

Its estimated total payout is 16-18% and its deficit is $57.99 million.

When HIH collapsed in 2001 the liquidator said it could take 10 years before some creditors were paid.

A royal commission into the failure found HIH’s “shambling journey towards oblivion” began well before 2001 and was due to factors including mismanagement, extravagance, underpricing of risk, under-reserving, the failure of the FAI acquisition and expansion abroad.

The collapse caused severe hardship for many individuals and non-profit groups, and threw some builders’ warranty and workers’ compensation markets into turmoil.

Several executives and directors were jailed, including HIH founder Ray Williams and former FAI MD Rodney Adler.