Hanover Group Holdings has filed an appeal after it lost a High Court fight with insurance giant AIG over a policy worth up to $20 million.
The insurance wrangle centred on a directors and officers liability (D&O) policy Hanover took out in November 2007 with AIG, and whether cover was provided for claims associated with certain Hanover prospectuses.
The cover would be used for legal costs associated with the upcoming civil stoush between former Hanover directors and the Financial Markets Authority (FMA) and any damages that may arise.
AIG (at the time legally known as Chartis Insurance New Zealand) did not accept that two prospectuses released by Hanover Finance and United Finance were covered by the policy.
The policy issued by the insurance giant fell short of complete prospectus cover but Hanover's lawyer, Nathan Gedye, argued that its broker and AIG had agreed in 2007 there would be D&O cover for all prospectuses issued during the policy period.