Latest News

Back to Latest News back

 

Christchurch City Council to receive $635 million post-earthquake insurance settlement

Christchurch City Council to receive $635 million post-earthquake insurance settlement
December 18, 2015

Christchurch City Council is to receive a global settlement of $635 million from its insurers for all its facilities damaged in the 2010/11 Canterbury earthquakes, including Lancaster Park (the former AMI Stadium).

The Council had lodged insurance claims worth $920 million for its above-ground assets, but settled with LAPP (the Local Authority Protection Programme Disaster Fund) and Civic Assurance’s principal reinsurers, – for a lesser, but still record, amount to avoid time-consuming and costly court action.

The settlement of $635 million follows complex and challenging negotiations which took several months to complete. They involved not just the Council’s insurer LAPP, but also Civic Assurance and Civic Assurance’s three main reinsurers.

It is a global settlement for all of the Council’s 1,600 or so individual above-ground asset claims and business interruption losses.

The agreed amount of $635 million is in addition to the $201 million paid by LAPP to Christchurch City Council for damage to the Council’s below-ground assets in 2012 and a Settlement with the Earthquake Commission of $59.4 million (after excess was deducted).

Peter Gudsell, the Council's Chief Financial Officer, said the Council was delighted to have reached a conditional settlement, stating “the actual settlement will take place in February when the Council is to receive payment in full.

“Achieving agreement means the Council will not be reliant upon progress payments from the insurer as and when agreed reinstatement work is undertaken.

“This gives Council far greater flexibility and certainty in terms of what and when assets can be repaired or replaced."

Christchurch Mayor Lianne Dalziel said the insurance settlement was great news for the city going into the Christmas break, adding “knowing our full and final insurance settlement gives us certainty as we begin work on our 2016/17 Annual Plan. It is an enormous relief."

The settlement covered Lancaster Park, one of the biggest claims, which the Council had insured for $143 million.

During negotiations, Civic Assurance had disputed that the venue was damaged beyond repair, at one time suggesting that it could be repaired for less than $50 million.

Council can now consider repairing the stadium and/or advancing its plans for a new venue closer to the city centre.

Canterbury Rugby Football Union Chief Executive Hamish Riach hoped the settlement would make the stadium issue more of a priority in the city's rebuild.

Riach told Fairfax media “we hope that that conversation can now be held in a thoughtful, planned way rather than pushing the stadium to the depths of the pond because it's somehow seen as being frivolous."

Riach explained that the union remained open to either a repaired Lancaster Park or a new arena.

Other post-earthquake settlements have seen the Arts Centre settle its insurance claims across all its buildings for $163 million. The bulk of its claim was with Ansvar New Zealand (now ACS Ltd), which paid out $156 million. The final $6.75 million was settled with Lumley Insurance in late 2012.

Images: Liquefaction at Lancaster Park after the February 2011 earthquake (top) and Lancaster Park in use as AMI Stadium prior to the earthquakes (below). 

3rd December 2015 - CALLS FOR BUILDING OF NEW CHRISTCHURCH CONVENTION CENTRE TO BE EXPEDITED

12th June 2015 - GO AHEAD FOR $127.5 MILLION RESTORATION OF CHRISTCHURCH TOWN HALL

27th April 2015 - RUGBY UNION OPEN TO LANCASTER PARK RETURN

19th April 2015 - INSURERS SUGGEST EARTHQUAKE-DAMAGED CHRISTCHURCH STADIUM CAN BE FIXED FOR LESS THAN $50 MILLION

4th November 2014 - CHRISTCHURCH’S TEMPORARY AMI STADIUM SET FOR LONGER LIFE

4th March 2014 - CHRISTCHURCH ADVANCES PLANS FOR POST-EARTHQUAKE SPORTS HUB

29th October 2012 - CHRISTCHURCH CITY COUNCIL COMMITTED TO NEW CBD STADIUM

11th April 2011 - VBASE’S PLANS TO BRING CHRISTCHURCH VENUES ‘BACK TO LIFE’


Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Yellowbox Lockers

Yellowbox is an Australian technology company that has developed smart locker technology operated through an app with a focus on experience for users and facility managers. Found at Beaches, Aquatic…

read more

Aquatics / Attractions / Entertainment / Retail / Security

 
 

HIDROPLAY

Hidroplay welcomes you to the exciting world of children's Playscapes, waterslide's and Water Attractions. Appealing to families, Hidroplay increases patronage in your facility during those…

read more

Aquatics / Play / Recreation

 
 

Pricemark Pty Ltd

Pricemark supplies a wide range of custom branded membership & RFID access products for the Health & Leisure Industry. 

read more

Access

 
 

revolutioniseSPORT

revolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…

read more

Recreation / Sport / Technology

 
 

Links Modular Solutions

Links Modular Solutions was a leading provider of high-quality, innovative software solutions for aquatic and recreation facilities. Links Modular Solutions is now part of Xplor Technologies.

read more

Access / Billing / Finance / Fitness / Technology

 
 

Envibe

With its sleek good looks and easy-to-use yet powerful functionality, Envibe is the premium fitness club software for the Australasian leisure, recreation and fitness industry. We are the most…

read more

Aquatics / Fitness / Recreation / Technology

 
 
 

Ticketworx Pty Ltd

Ticketworx (formerly House of Tickets) is Australia and New Zealand’s foremost ticket specialist servicing some 2,700 clients and producing in excess of 30 million per tickets per annum.…

read more

Entertainment / Events / Technology / Ticketing / Venues

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business