Ecclesiastical to quit New Zealand because of quake

Church insurer Ecclesiastical today said it would no longer do business in New Zealand because premiums have spiralled as a result of the devastating series of earthquakes which hit Canterbury this year and last.

It said the "prohibitive" cost of reinsurance in the country meant its New Zealand subsidiary would stop providing cover from December 31 this year. The insurer added that the total cost of claims for the quakes was "continuing to evolve".

At its half-year results in August, Ecclesiastical said two New Zealand quakes in February and June this year cost it £200.5 million. Last year's quakes in the country cost £61 million.