HIH liquidator Tony McGrath is just one of the many people finding answers through the transcripts on the HIH Royal Commission’s website (www,hihroyalcom.gov.au). Although he and his team of investigators and auditors had worked out there were some questionable reinsurance contracts lurking in the background, the existence of “side letters” were still a surprise.

Speaking on Channel Nine’s Business Sunday, Mr McGrath said the “long road” being navigated by the liquidation team – he expects it to take up to 10 years – is assisted by the work of the royal commission. “We think that the key assets we’ve got to realise from here are not only the reinsurance assets… but also claims that we might be able to bring against third parties like advisers and directors of the company.”

Other “third parties” mentioned by Mr McGrath as possible lawsuit targets were “auditors, actuaries, legal advisers and reinsurers. “It may even be wider.”

Highlighting the “huge movement” between HIH’s last reported assets of $940 million and the post-collapse deficiencies of $3.6-$5.3 billion, Mr McGrath said he expects the liquidation team to make decisions on legal moves six to nine months after the royal commission reports. “Our aim… is to get the best return for the creditors in the quickest time possible.”

He said his team is still looking at the deal struck between HIH and Allianz. “Part of that process involves us assessing price or preference issues that we’ve raised before.” He said the fact that Allianz has not yet paid for the remaining part of the joint venture operation that was sold to it just before the company collapsed is not unusual in a liquidation process.

To date the liquidators have realised $500 million in assets and expect to raise $1.2-$2 billion in assets.