OIC Run-Off Limited and The London & Overseas Insurance Company Limited
Scheme effective date: |
7 March 1997 |
|---|---|
| Date of insolvency: | 21 October 1994 |
| Type of appointment: | Scheme of Arrangement |
| Appointment holders: | Paul Evans (Scheme Administrator) Daniel Schwarzmann (Scheme Administrator) |
| Financial information: | Last accounts filed 31 December 2009 |
| Current payment percentage: | 53% |
| Key contacts: | Robert Kingdom PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT Tel: +44 (0) 20 7804 4340 Email the Scheme Administrators OIC Run-Off Services Ltd c/o Armour Risk Management Limited 20 Old Broad Street London EC2N 1DP Email the OIC Armour Helpdesk Policyholder Helpline: +44 (0) 20 7382 2020 Fax: +44 (0) 20 7382 2001 |
Company background: |
OIC Run-Off Limited (formerly the Orion Insurance Company plc) ("OIC") was incorporated on 30 April 1931 in the name of Ralli Brothers Insurance Company Limited. The London and Overseas Insurance Company Limited ("L&O") was incorporated on 25 April 1893 in the name of Hull Underwriters' Association Limited. L&O was acquired by OIC on 20 March 1969. The ultimate parent company of OIC and L&O is ING Group NV. OIC wrote principally marine, aviation, non-marine and personal lines business and also had smaller accounts in commercial and healthcare business. L&O wrote marine, aviation, transit and property damage business. OIC ceased underwriting all classes of business with effect from 1 September 1992. L&O ceased underwriting business on 1 January 1992. Paul Evans and Richard Boys-Stones were appointed Joint Provisional Liquidators on 21 October 1994. Cross guarantees exist between OIC and L&O in favour of each other's policyholders; this means that policyholders have the same net claim against both OIC and L&O. To minimise administrative costs, one Scheme of Arrangement ("the Scheme"), dealing with both OIC and L&O, has been written. The Scheme became effective on 7 March 1997. The current Payment Percentage is 53% of established liabilities. Total Scheme payments were US$543 million to 30 September 2010. Additionally, under arrangements between the parent company and the Institute of London Underwriters ('ILU'), US$209 million has been paid to 30 September 2010 to policyholders with established liabilities on ILU policies incepting on or after 28 August 1970 for OIC or 20 March 1969 for L&O. Further information can be found on the OIC website at www.oicrun-offltd.com. |
Next steps: |
OIC and L&O continue to operate their strategy, which under the Scheme is to run-off claims and agree reinsurance recoveries in the ordinary course of business. However proposals are currently being drafted with a view to issuing an Amending Scheme of Arrangement, which will detail a crystallisation process. |
Information correct as at: December 2010
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