Catholic Church Insurance has suffered a nearly $275 million loss, and its net assets fell to close to $10 million last financial year as the business winds down. Source: The Australian.
Historical child sexual abuse cases still loom as a long-term threat to the Church after recent court decisions have exposed Catholic entities to big payouts.
Statements show CCI lost hundreds of millions in financial years from 2019 to 2020, with a $866,000 profit in 2021-22.
CCI said any further losses may or may not trigger the need to pay remaining policyholders less than 100 cents in the dollar, although the expectation under its scheme of arrangement would be that amounts would ultimately be paid in full.
Australia’s Catholic bishops are expected to discuss CCI’s large losses later this year but advisers believe there will not be a “mini-HIH’’, referring to the collapse of the once $8 billion insurer after its net assets crashed in value.
CCI chief executive Rob Scenna said his organisation had transitioned into a claims management firm that didn’t market, sell or renew policies.
The Australian Prudential Regulation Authority is monitoring developments at CCI.
A spokeswoman said: “APRA has no comment other than to note that CCI entered into a scheme of arrangement in November 2023 and APRA continues to monitor CCI to ensure its run-off remains as orderly as possible.”
Last year, Australia Catholic Bishops Conference president Archbishop Timothy Costelloe assured the community that the Church was fully committed to engaging with survivors of historical abuse to fulfil its legal obligations.
“The Church is working closely with all Catholic ministries currently affiliated with CCI to ensure continuity of insurance cover for public liability and asset protection,’’ he said.
FULL STORY
Catholic insurer’s $275m loss amid questions over future payouts (By John Ferguson, The Australian)
