HIH Insurance was publicly listed on the ASX and operating in many offshore markets. 

At the time it went into liquidation in 2001 it was Australia’s second largest general insurer.

Cronus Consulting services utilized for the following projects, related to the liquidation:

FUND MANAGEMENT PROJECT

Phase 1
The Liquidator initiated a tender process for three fund managers for $1.5 billion of investments. Cronus Consulting tasks include:

• Assist in tender design and plan.
• Setting investment portfolio objectives.
• Active participation on selection panel for tender process.

Phase 2
Cronus Consulting develops asset track and transfer system – focus on accuracy.

Phase 3
Cronus Consulting designs and builds new structure for the investments in the accounting system:

• Simplified reporting system with greater transparency.
• Reporting system linked to accounting system.
• Provision of detailed analysis of investments (turn around time reduced by 10 days).
• Simplified investment earning for income tax returns achieving instant turn around.

Phase 4
Cronus Consulting enters into negotiation with the banks to achieve a competitive interest rate and fee structure increasing cash by $3.7million per annum.

SYSTEMS UPGRADE PROJECT

Cronus Consulting was tasked with coordinating with the finance team to actively participate in the upgrade of the accounting system and TM1. Focus is on a smooth transition, which was achieved and the system integrated successfully.

BUSINESS PROCESSES PROJECT

Phase 1
• Identify key resource risks
• Document business processes
• Multi skill staff for more than one role (with natural attrition of 25% of the team, operating costs were reduced without loss of intellectual property)

Phase 2
• Documentation for retention of intellectual property
• Facilitate an audit of controls and processes by KPMG
Review found that all documentation produced by Cronus Consulting was trustworthy and actionable.

GST PROJECT

Cronus Consulting worked with the liquidation partners to define a process to recover GST credits related to pre liquidation transactions. Recoverable credits have totaled $9.2 million to date.

Cronus Consulting develops process map and documents procedures: