NSW SUPREME COURT BACKS HIH AGAINST GEN RE AUSTRALIA

The New South Wales Supreme Court has backed failed Australian insurer HIH in a dispute with Berkshire Hathaway subsidiary General Re Australia. Justice Robert McDougall ordered Gen Re to pay a total of AUD2.36m ($2.25m). In 1999 HIH signed a reinsurance deal with a number of companies, including Gen Re. HIH subsequently paid a claim by Suncorp Metway and looked to reclaim the money from its reinsurers. Gen Re was the only company to decline to pay. The claim was brought through McGrathNicol & Partners, liquidator for HIH.