A report into the collapse of HIH insurance

Table of contents. 1. Introduction.         1 1.1 History.         1 1.2 Stakeholders.         1 1.3 Environment.         2 2. Analysis.         2 2.1 U.K.         3 2.2 U.S.A.         3 2.3 FAI.         4 2.4 HIH accounts.         5 List of references.         7 1. Introduction. On March 15 March 2001 Australias second largest amends broker, HIH collapsed with debts in unnecessary of A$5billion. This report intends to discuss some of HIHs handicraft objectives and fanciful accounting practices that may have attributed to the collapse of the company. 1.1 History. HIH began direct in Australia in 1968 under the name C.E. heath plc, an side ground damages company whose Australian operations specialise in the underwriting of workers salary. 1968 was too the year that ray of light Williams (future chief operating officer of HIH) and good pr otagonist Michael Payne set up MW Payne Liability Agencies, a small indemnity company based in Melbourne that offered workers compensation and public obligation insurance (Main 2003). In 1974 the two companies unify and undertook the name C.E. heathland Underwriting and redress (Australia) Propriety Limited. The company guide by Ray Williams was listed on the ASX as C.E. Heath supranational in 1992 and in 1995 C.E.

Heath plc sold its remaining deal of the company to Winterthur Swiss Insurance Co in a deal that also involved the acquisition of local insurer CIC (Main 2003). It was at this age that the company became known as Heath International Holdings or HIH. HIH was comprised of over 250 companies at the time of liquidat! ion (Main 2003), including HIH Casualty and habitual Insurance Limited, FAI planetary Insurance connection Limited (FAI), CIC Insurance Limited (CIC) and World Marine and General Insurances Limited (WMG). They provided many another(prenominal) types of insurance in Australia, the USA, and the UK including general insurance underwriting, the operation of insurance underwriting agencies and investment funds management, while medical specialist areas... If you want to give rise a full essay, bless it on our website: OrderEssay.net

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