The High Court placed CBL Insurance Ltd (CBLI) into interim liquidation on the application of the Reserve Bank of New Zealand in February 2018. CBLI is a licensed insurer and as such is subject to the Insurance (Prudential Supervision) Act 2010. Courtney J did not issue a full judgment recording the reasons for her decision because of the extensive confidentiality orders required in the circumstances. She did, however, record that she was satisfied that the statutory criteria were met for the appointment of interim liquidators. Under section 151 Insurance (Prudential Supervision) Act 2010, the High Court may appoint liquidators to a licensed insurance company if the Court is satisfied that:
- The insurer is unable to pay its debts
- The insurer is failing to maintain a solvency margin
- The insurer has persistently or seriously failed to comply with any direction imposed by or under the Act or the regulations
- It is just and equitable that the insurer by put into liquidation.
The hearing date of the Reserve Bank's application for the liquidation of CBLI is yet to be allocated. Buddle Findlay acts for the Reserve Bank in relation to the application. The application is opposed.