Vero finally settles $550m three-year old quake claim

Vero has paid out $550m to University of Canterbury for its quake claims.

Vero Insurance says it has made an “historic” $550 million settlement of the University of Canterbury’s earthquake claims.

Vero says it was the lead insurer of five New Zealand-based co-insurers in making the largest private insurer-lead settlement in New Zealand for the 2011 earthquakes.

The prepared media statement does not name the other five or the relative contributions.

The lengthy settlement process involved assessments of 237 buildings requiring “specialist review and detailed analysis” for each of the earthquakes.

During the negotiation process the insurers made progress payments so the university could continue to operate.

Vero has paid out almost $3.9 billion of its total costs toward the Canterbury Earthquake Recovery programme and the university payment takes it over the $4 billion level, according to chief executive Gary Dransfield.

“The agreement is a great example of the benefit to Kiwis of having locally based private insurers leading some of the largest insurance settlement agreements in New Zealand,” Mr Dransfield says.

Other major settlements led by Vero include Lyttelton Ports $445 million, Housing New Zealand $320 million and Ministry of Education $200 million.