Guide to Solvent Schemes of Arrangement for the Insurance Industry

PwC

To find out more about us please visit our website www.pwc.co.uk/discontinuedinsurance

Guide to Solvent Schemes

of Arrangement for the

Insurance Industry

1 January 2015

Solvent Schemes of Arrangement

(1)

Scope

(2)

Home Jurisdiction Scheme Advisers

Arig (UK) Company UK PwC

Arion Company Bermuda PwC

Aviation & General Company UK PwC

Blackfriars Company UK PwC

Camomile Underwriting Agencies For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

UK None

CEAI Certain business Belgium PwC

City General Company UK PwC

City General (Ex Generali Assurances Générales Business) Company UK None

Colonia (Ireland) Company Ireland Ernst & Young

Crombie (UK) Company UK KPMG

Deutsche Rück UK Reinsurance Company Ltd Certain business UK KPMG

Dunedin Pool

(4 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

UK PwC

(4 companies)

Dutch Aviation Pool

(18 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Netherlands PwC

(18 companies)

EAUA Pools

(13 solvent companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various KPMG

(13 companies)

European Re of Zurich Certain business Switzerland PwC

E W Payne Excess of Loss Pools

(82 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various KPMG

(82 companies)

FIGRE Company UK PwC

Global General Certain direct insurance business (2006) UK PwC

Global General Certain reinsurance business (2008) UK PwC

Global General Company (2011) UK PwC

GLOBALE Rückversicherungs-AG Certain business Germany PwC

Global London Market Pool

(5 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various PwC

(4 companies)

KPMG (1 company)

Gordian RunOff (UK) Company UK Deloitte

Great Lakes Re (UK) Certain business UK PwC

Harrington International Certain business Bermuda KPMG

Hassneh (UK) Company UK PwC

HIR (UK) Company UK RSM Robson Rhodes

Hopewell International Company Bermuda None

ING

(5 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various PwC

(5 companies)

ING Re (UK) Company UK PwC

Korean (UK) Company UK Ernst & Young

La Metropole Certain business of UK branch Belgium PwC

La Mutuelle du Mans Assurances Certain business of UK branch France Scottish Lion Underwriting Agencies

Lakewood Company UK PwC

LaSalle Re Company Bermuda KPMG

Lion City Run-Off Private Company Singapore KPMG

Ludgate Company UK PwC

PwC

Notes

(1) This table includes Solvent Schemes of Arrangement that have become legally effective. The information contained in this schedule has been derived solely from statutory notices and other data available from national newspapers, industry

journals and appropriate scheme web-sites. The information has not been independently verified by PwC.

(2) In some cases certain policies have been excluded from the scope of the Solvent Scheme of Arrangement. Full details are provided in the relevant Solvent Scheme of Arrangement document.

Guide to Solvent Schemes

of Arrangement for the

Insurance Industry

1 January 2015

Solvent Schemes of Arrangement

(1)

Scope

(2)

Home Jurisdiction Scheme Advisers

Malayan (UK) Company UK Chiltington

Mariner Reinsurance Company Limited Company Bermuda KPMG

Marlon Certain business UK PwC

Meadows Indemnity Company Limited Company UK Ambant Limited

Mercantile & General Re Company UK PwC

Minster (7 companies) For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

UK PwC

Moorgate Certain business UK KPMG

Mutual of Omaha (UK) Company UK PwC

National Insurance & Guarantee Corporation Certain business UK PwC

Nichido Fire & Marine of Japan UK branch Japan None

NRC Re Company Bermuda PwC

NRG London Australian branch UK None

NRG Victory Australia Company Australia None

Osiris Company UK KPMG

Oslo Re (UK) Certain business UK KPMG

Oslo Re ASA Certain business Norway KPMG

PanFinancial Company UK None

Pender Mutual Certain business Isle of Man KPMG

QBE Re (UK) Certain business UK PwC

Quincy Mutual Fire UK branch USA Begbies Traynor

Ramus Company Bermuda PwC

Reliance National Asia Re Company Singapore Ernst & Young

Reliance National (Europe) Certain business UK KPMG

Scottish & Commonwealth Company Bermuda PwC

Scottish Eagle Company UK PwC

Seven Continents Company Bermuda KPMG

Sphere Drake Certain business UK PwC

SRO Run-Off Company Bermuda PwC

St Helen’s Trust (5 companies) and, in relation to Prudential

Assurance, certain London Market business

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

UK PwC

(5 companies)

Tanker Company UK PwC

Transcon Company Bermuda PwC

Tokio Marine Europe Insurance Limited Certain reinsurance business UK None

Trent Company Bermuda PwC

Trident Pool

(2 companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

UK PwC

(2 companies)

Trimark Pool

(47 solvent companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various KPMG

(47 companies)

Unione Italiana (UK) Re Certain business UK PwC

Walton Company Bermuda KPMG

WFUM Pools

(14 solvent companies)

For full details of companies and/or business

included in the scheme please go to

http://brsuk.pwc.com/solvent.asp

Various PwC

(6 companies)

KPMG (8 companies)

Winterthur Swiss Certain business Switzerland None

Insolvency Procedure Organisation

Provisional Liquidation Date of Provisional Liquidation Provisional Liquidators

Återfőrsäkrings AB LUAP – UK Branch 1 July 2002 (ended on 14 November 2013) PwC

Home – UK Branch 8 May 2003 Ernst & Young

Independent Insurance 17 June 2001 PwC

Run-off Scheme of Arrangement Current Dividend Scheme Administrators

BAI (Run-off) 5% PwC

Chester Street 3% PwC

Drake 65% Deloitte

HIH

(1)

(8 companies) See note (1) KPMG/McGrathNicol

Home

(2)

Undeclared Ernst & Young

Monument

(3)

36.9% (final) PwC

New Cap Reinsurance Corporation Limited

(4)

65% for insurance creditors, 56% to others Bentleys Corporate Recvoery

OIC Run-Off (formerly Orion) and London & Overseas

(5)

58% PwC

Paramount 40% PwC

Valuation Scheme of Arrangement Current Dividend Scheme Administrators

AA Mutual International

(6)

31.4% (final) PwC

AFG Insurance Undeclared Ernst & Young

Andrew Weir (converted from run-off)

(6)

49.65% (final) PwC

Anglo American (converted from run-off)

(7)

100% (final) KPMG

Aneco

(8)

72.6% (final) PwC

Bermuda Fire & Marine (converted from run-off) 90% Ernst & Young

Black Sea & Baltic

(6)

57.69% (final) PwC

BNIB

(9)

100% (final) PwC

Bristol Re

(9)

55.1% (final) PwC

Bryanston (converted from run-off) 60.61% (final) PwC

Chancellor (converted from run-off) 42.1% (final) Deloitte

Charter Re

(10)

90.58% (final) PwC

Compagnie Europeenne de Reassurances

(11)

0.52% (final) PwC

English & American 48% KPMG

Folksam International (UK) Undeclared PwC

Fremont (UK)

(3)

38.34% (final) PwC

Hawk

(3)

23% (final) PwC

Highlands Insurance Company (UK) Limited 100% to direct creditors, 15% to cedants PwC

ICS Re

(12)

88.8% (final) PwC

Insurance Corporation of Singapore (UK) (converted from run-off) 100% to general creditors (final) PwC

KWELM (converted from run-off) K-86.41%, W -100%, E -100%, L-90.25%, M-76.42% (final) CJ Hughes and CG Reynolds

Marina Mutual Insurance 34% (final) Grant Thornton

Municipal General Insurance

(14)

111.5% JB Stephenson and GR Gadsby

New Cap Reinsurance (Bermuda)

(15)

33.85% (final) Ernst & Young

North Atlantic 27.11% (final) PwC

Pacific & General Insurance 20% (final) Grant Thornton

Pan Atlantic 6.93% (final) Grant Thornton

Pine Top

(16)

24.9% (final) Ernst & Young

RMCA Re

(12)

93.04% (final) PwC

Scan Re (converted from run-off)

(16)

80.5% (final) Ernst & Young

Sovereign 97% (final) KPMG

Stockholm Re (Bermuda) 36.37% (final) Deloitte

Taisei Fire & Marine

(17)

62% Ernst & Young

Trinity (converted from run-off) 76.75% (final) PwC

UIC 134% (final) Grant Thornton

United Standard 64.94% (final) PwC

Guide to London Market

Insolvencies since 1989

1 January 2015

Notes

(1) Companies subject to English & Australian Schemes of Arrangement (dual run-off and estimation scheme)

(All in liquidation in Australia and Provisional Liquidation in England)

HIH Casualty & General Insurance Ltd: Australia 43.72%; creditors with Insurance claims that are not in Australia: 41.62%; Non Insurance claims in Australia: 33%; Non Insurance claims not in Australia: 30.5%

FAI Insurances Limited: Australia 69.2%; creditors with Insurance claims that are not in Australia: 10%; creditors with Non Insurance claims in Australia: 12%

FAI General Insurance Company Limited: 60.5%, and to creditors with insurance liabilities 62.48%

World Marine & General insurances Pty Limited: Australia 100%

Companies subject to Australian Schemes of Arrangement (dual run-off and estimation schemes)

(All in liquidation in Australia)

CIC Insurance Limited - 70%, and to creditors with insurance liabilities 71.2%

FAI Traders Insurance Company Limited – 17.5%

FAI Reinsurances Pty Limited - 100%

HIH Underwriting and Insurance (Australia) Pty Limited – Australia 19.81%, and to creditors with Non Insurance claims 19%

(2) This scheme relates to business written by The Home Insurance Company through the AFIA Pool.

(3) Scheme exited via compulsory liquidation handled by PwC. No additional dividend.

(4) This scheme is a hybrid scheme comprising a 'reserving phase' and a 'cut-off' phase. For queries please contact [email protected].com

(5) Certain claims are presently being paid in full by OIC Run-Off and London & Overseas.

(6) Scheme exited via compulsory liquidation handled by the official receiver. No further dividend expected.

(7) Scheme terminated in 2007 and now subject to members’ voluntary liquidation handled by KPMG. Payment percentage remains 100%.

(8) Also in liquidation handled by PwC.

(9) Company was dissolved on 31 May 2007 following settlement of all liabilities within the Scheme.

(10) Scheme exited via compulsory liquidation handled by PwC. Final additional dividend of 2.78%.

(11) Company in liquidation in France. The French liquidator is M. Jean Claude Pierrel. j.pierrel@mjassocies.com.

(12) The scheme of arrangement in relation to the company's direct insurance creditors has now been terminated. A separate scheme of arrangement for reinsurance creditors became effective on 22 September 2011 and the deadline for

submitting claims 20 March 2012. All submitted claims have now been agreed.

(13) Scheme closed and company dissolution achieved via a members' voluntary liquidation handled by KPMG Singapore. No dividend was paid.

(14) JB Stephenson and GR Gadsby, the Scheme Administrators to Municipal General Insurance are assisted by Mazars LLP. The Scheme closes on 4 February 2015 and there is a Court hearing on 9 February 2015.

(15) Also in liquidation handled by Ernst & Young.

(16) Scheme exited via compulsory liquidation handled by Ernst & Young. No dividend was paid.

(17) Payments pursuant to the Reorganisation Plan for international reinsurance creditors.

(18) Joint appointment with David Buchler.

(19) PwC’s role in respect of these estates was to collect in the assets. PwC has now concluded their role and funds have been passed to the Belgian liquidator. Despite the liquidation remaining open, there will be no further distribution to

creditors. The Belgian liquidator is Jean Michel Derick: jeanmichel.de[email protected].

Contact Details

PwC is one of the leading firms of advisers to the insurance industry. If you have any questions in relation to Schemes of Arrangement or insurance

company insolvencies, please contact one of our team:

Dan Schwarzmann Alan Augustin Nigel Rackham Andrew Ward Clare Whitcombe

+44 (0) 20 7804 5067 +44 (0) 20 7804 4098 +44 (0) 20 7212 6270 +44 (0) 20 7213 3197 +44 (0)20 7804 4844

[email protected] alan.augustin@uk.pwc.com [email protected] [email protected] clare.l.[email protected].com

Insolvency Procedure Organisation

Liquidation Current Dividend Liquidators

Belvedere Insurance (Bermuda) 15.5% (final) KPMG

Continental Assurance

(18)

Nil (final) PwC

Dai Ichi Kyoto Reinsurance Company SA

(19)

Funds remitted to Belgian liquidator PwC

Kobe Reinsurance SA

(19)

Funds remitted to Belgian liquidator PwC

National Employers Mutual General (NEMGIA) 37.58% (final) KPMG

Oaklife Nil (final) PwC

7 More London Riverside, London, SE1 2RT

Telephone number: +44 (0) 20 7583 5000

Facsimile number: +44 (0) 20 7212 7500

You can also visit our website: www.pwc.co.uk/discontinuedinsurance

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No

representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do

not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

© 2015 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for

further details.

Guide to London Market

Insolvencies since 1989

1 January 2015