On application of the company, the Court appointed a provisional liquidator to the HIH Insurance Group yesterday evening. As the prudential supervisor of licensed insurance companies, the Australian Prudential Regulation Authority (APRA) is now working closely with the provisional liquidator.

APRA is also in close contact with the other insurance companies that have recently taken over significant parts of HIHs business. These companies are Allianz, QBE and NRMA, which are all secure and strong.

Our immediate aim is that a comprehensive statement will be issued later today outlining, as far as possible, the position of the various groups of policyholders.

APRA has this morning appointed its own inspector, Mr David Lombe of Deloittes, to investigate the affairs of HIH and the Australian-authorised insurers in the HIH Group, including the financial condition of the company. This appointment follows the issue of a show cause notice to the company by APRA on 1 March and the expiration yesterday of the statutory period for the company to respond to that.

APRAs inspector will work with the provisional liquidator to ensure that APRA is fully informed of the management of HIHs insurance liabilities and claims and can advise on options to best protect the interests of all policyholders.

The provisional liquidator, Mr Tony McGrath of KPMG, has advised that HIH would continue to manage its existing liabilities and claims, but will not be writing any new business.

For further information contact:

Gloria Peterson
Public Affairs Manager
02 9210 3385