Investigation into failed broker nears end

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12 March 2012

New Zealand’s Serious Fraud Office (SFO) is close to concluding its investigation into the failed broker Herbert Insurance Group.

The SFO is expected to make a statement in the next few weeks, with director Adam Feeley telling insuranceNEWS.com.au the investigation is well advanced.

Auckland-based Herbert went into receivership in March last year, and the SFO announced shortly afterwards that it was investigating concerns surrounding an apparent shortfall in the group’s client premiums account. 

The SFO was particularly interested in whether the premiums were passed on to insurers.

Aon bought Herbert’s 4000-strong client list and PSC Insurance bought the Australian portfolio, which operated independently of the New Zealand company.

The New Zealand company’s employees, the Inland Revenue and unsecured creditors have been told they are unlikely to receive any money.