OIC Run-Off Limited and The London & Overseas Insurance Company Limited

Scheme effective date: 7 March 1997 (Original Scheme of Arrangement (“Original Scheme”)) and 14 January 2016 (Amending Scheme of Arrangement (“Amending Scheme”))
Date of insolvency: 21 October 1994
Type of appointment: Scheme of Arrangement
Appointment holders: Dan Schwarzmann (Scheme Administrator)

Nigel Rackham (Scheme Administrator)
Financial information: Last accounts updated to December 2022 (accessible on https://www.oicrun-offltd.com/html/document_others.html)
Current payment percentage: 76%
Key contacts:

Amarjit Gill
PricewaterhouseCoopers LLP
7 More London Riverside
London
SE1 2RT
Email the Scheme Administrators uk_oic_run_off_limited@pwc.com

Hampden Plc
40 Gracechurch Street
London
EC3V 0BT

Email the OIC Hampden Helpdesk:
OICClosureHelpdesk@hampden.co.uk

Policyholder Helpline: +44 (0) 207 863 6560

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 NN 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, dealing with both OIC and L&O, has been written. The Original Scheme became effective on 7 March 1997 and provides for claims to be agreed in the ordinary course of business.

The Amending Scheme, which aims to crystallise the majority of the Companies’ liabilities, became effective on 14 January 2016. The bar date for claims submissions, subject to the terms of the Amending Scheme, was 12 September 2016. On 17 February 2017, the Scheme Administrators were able to confirm that the 30% opt out threshold in respect of Qualifying Scheme Creditors had not been exceeded.

The current Payment Percentage is 76% of established liabilities. Total dividend payments were US$1,014 million to 30 September 2020. Additionally, under arrangements between the parent company and the Institute of London Underwriters ("ILU"), US$240 million has been paid to 30 September 2020 to policyholders with established liabilities on ILU policies incepting on or after 28 August 1970 for OIC or 20 March 1969 for L&O.

The claims of the General Scheme Creditors and Qualifying Scheme Creditors combined that are subject to the Amending Scheme have been crystallised at US$1,338 million.

Further information can be found on the OIC website at www.oic run-unltd.com.

 

Next steps: The Scheme Administrators have concluded that at present, the expected date of a final Payment Percentage distribution for the Companies has been delayed as a result of various uncertainties, including in relation to tax. The Scheme Administrators have been exploring a new solution for Scheme Creditors, which, if and when finalised, will include Court approval.

If you wish to view the PwC privacy statement, please click here.

Dan Yoram Schwarzmann and Douglas Nigel Rackham have been appointed as Joint Liquidators and Joint Scheme Administrators of Stronghold Insurance Company Limited. Dan Yoram Schwarzmann and Douglas Nigel Rackham are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

The Insurers (Reorganisation and Winding Up) Regulations 2004 apply to Stronghold Insurance Company Limited. The effect of these regulations is that direct insurance creditors have priority over other classes of unsecured creditors, including cedants.

The Joint Liquidators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.

The Joint Liquidators and Joint Scheme Administrators may act as controllers of personal data as defined by UK data protection law depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the Joint Liquidators and Joint Scheme Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Liquidators’ and Joint Scheme Administrators’ appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the Joint Liquidators and Joint Scheme Administrators.

Information correct as at: 6 December 2023


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