HIH commission falls short on technicals
pdf HIH commission falls short on technicals (65 KB) by Ben Zehnwirth was published in the Australian Financial Review on December 10, 2002. This article responds to Helen Martin (President of the Institute of Actuaries of Australia) and argues that the cause of the collapse was massive under-reserving and not corporate malfeasance.
HIH: Myths debunked and abrupt collapse explained
pdf HIH: Myths debunked and abrupt collapse (269 KB) explained by Ben Zehnwirth. As its title suggests, this analysis exposes the myths perpetuated by the media and Royal Commission surrounding the collapse of HIH. The article explains how HIH was an exponential snowballing failure in progress for over 10 years. The failure was easily detectable from HIH's 1996, 1997 or 1998 financial accounts. Though HIH was chronically and woefully under-reserved, it was still cash flow positive before running out of cash abruptly.
HIH debacle reveals monitoring flaws
pdf HIH debacle reveals monitoring flaws (97 KB) (by Ben Zehnwirth) This letter, published in the Australian Financial Review on November 15, 2002 discusses why the government regulator, APRA, did not intervene and allowed HIH to collapse. (Word Document approx 109kb).
FAI a red herring, not Trojan horse, in HIH disaster
archive FAI a red herring, not Trojan horse, in HIH disaster (70 KB) (by Ben Zehnwirth) This letter, published in the Australian Financial Review on May 10, 2002 contends that HIH's purchase of FAI was not the cause of HIH's downfall. Rather, HIH's financial position 10 to 15 years ago already signalled its ultimate demise.
The Collapse of HIH - a detailed report into the collapse of HIH
pdf The Collapse of HIH - a detailed report into the collapse of HIH (178 KB) by Prof. Ben Zehnwirth.
Two key recommendations that Commissioner Justice Owen adopted
Two key recommendations that Commissioner Justice Owen adopted (16 and 35) based on Prof. Zehnwirth's submissions to the HIH Royal Commission.