Christchurch City Council (CCC) has filed an arbitration case against Aon New Zealand seeking $528 million – plus interest and costs – over damages wrought by the 2010 and 2011 Canterbury earthquakes.

At that time, Aon New Zealand provided insurance broking services to CCC in relation to its 2010-2011 material damage and business interruption program.

In December 2015, CCC settled its property and business interruption claim for the earthquake’s losses, according to the latest quarterly report filed by the insurer’s parent firm before the US Securities and Exchange Commission. But Aon said CCC now “contends that acts and omissions by Aon caused CCC to recover less in that settlement than it otherwise would have.”

The insurer said it intends to “vigorously” defend itself against these claims.

This isn’t Aon’s only major legal battle in the country. In December 2015, the report noted that Lyttelton Port Company (LPC) sued the insurer in the Christchurch High Court, over claims that Aon was negligent and in breach of contract in arranging LPC’s property insurance program from June 30, 2010 to June 30, 2011. LPC claims damages of approximately $184 million.

According to its latest financial report, LPC said its directors are confident in the firm’s case, but they are to unable to estimate LPC’s chances of success and the final amount that may be awarded.


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