Govt backs up AMP

The Government says the bailout of insurer AMI could expose taxpayers to a $1 billion bill.   http://www.stuff.co.nz/dominion-post/news/4858410/Government-announces-500m-bailout-for-insurer-AMI

Finance Minister Bill English this morning announced a back-up financial support package of up to $500 million for AMI but indicated the full cost could be double that amount.

AMI is facing major problems after the Christchurch earthquake and is at risk of going bust over quake claims.

“The intent of the package is to give certainty that all claims will be met,” English said.

English said the Government would invest the equity into AMI, with the right to take ownership and assume control if needed.

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