Southern Cross parts with PR firm

By DITA DE BONI

Besieged healthcare insurance provider Southern Cross and its hired PR guns have parted company.

The Business Herald understands that Weber Shandwick - now renamed Sorensen Group - was brought in to deal with the furore created by the insurer's tardy treatment of claims, but almost immediately fell out with the company over how to deal with the publicity.

Sorensen Group head Klaus Sorensen said last night that he had resigned the account.

The group had not advised Southern Cross since February 1, the day news broke of the relationship between the companies.

"We had a difference of opinion about the advice provided," he said.

Southern Cross, the country's largest health insurer, had been using Praxis Public Relations for its general work before the storm broke.

Praxis is understood to be one of the groups advising the board.

It is unclear who will succeed Shandwick in the prime troubleshooting role. Several firms are believed to be pitching for the account, worth well into six figures.

Many believe Raynish & Partners is being lined up for the work. Jenni Raynish, who is advising Southern Cross chairman Hylton LeGrice, could not be reached for comment last night.

nzherald.co.nz/southerncross