HIH liquidator wins Gen Re case
The NSW Supreme Court has ruled General Reinsurance Australia should pay $2.4 million plus interest to HIH liquidator Tony McGrath.
The judgement relates to a trade credit policy issued by failed insurer HIH in 1999. Most reinsurers tied to the policy had paid out on HIH’s subsequent reinsurance claim, with the exception of Gen Re.
Gen Re is owned by Warren Buffett’s Berkshire Hathaway.
The liquidator’s $529 million civil damages claim on behalf of HIH is separately before the NSW Supreme Court.
Mr McGrath is attempting to recover the $295 million HIH spent on FAI in 1998, plus interest, from nine defendants, including former FAI CEO Rodney Adler, as well as shadow treasurer and former Goldman Sachs Australia MD and Chairman Malcolm Turnbull. Fifteen cross-claims have also been lodged.
HIH collapsed in 2001 with debts of $5.3 billion.
The judgement relates to a trade credit policy issued by failed insurer HIH in 1999. Most reinsurers tied to the policy had paid out on HIH’s subsequent reinsurance claim, with the exception of Gen Re.
Gen Re is owned by Warren Buffett’s Berkshire Hathaway.
The liquidator’s $529 million civil damages claim on behalf of HIH is separately before the NSW Supreme Court.
Mr McGrath is attempting to recover the $295 million HIH spent on FAI in 1998, plus interest, from nine defendants, including former FAI CEO Rodney Adler, as well as shadow treasurer and former Goldman Sachs Australia MD and Chairman Malcolm Turnbull. Fifteen cross-claims have also been lodged.
HIH collapsed in 2001 with debts of $5.3 billion.