UK Prudential Regulation Authority announces voluntary liquidation of and appointment of a liquidator for an insurance company
On 27 January 2014, the UK Prudential Regulation Authority (PRA) announced that, further to resolutions passed by the insurance company Island Capital (Europe) Limited (‘the Firm’), on 23 January 2014 the Firm was placed into solvent liquidation, more particularly, Members´ Voluntary Liquidation (‘MVL’). MVL has the following effects:
- Richard William James Long has been appointed Liquidator of the Firm.
- The authority of the directors of the Firm to manage its affairs passed to the Liquidator on his appointment on 23 January 2014.
- The Liquidator is responsible for the winding up of the Firm and distribution of its assets.
- The PRA is entitled to receive copies of all papers pertaining to the liquidation and to receive updates on progress as well as how funds are applied, including any proposed distribution to shareholders.
- Before making any distribution to shareholders, the Liquidator is required to ensure that all known creditors have been paid.
- The Liquidator also has a duty to act in good faith and to exercise his powers with reasonable care and skill and for their proper purposes only.
- The Firm has advised the PRA that all policies are off-risk and all claims notified to date have been paid. In the event that claims emerge during the liquidation process, then these will be paid by the Liquidator. If there are insufficient funds to pay claims in full then the MVL would convert from a solvent liquidation to an insolvent creditors´ voluntary liquidation. Should this occur, the PRA will provide a further notice of liquidation.
The PRA has announced the above resolutions on the basis of the Directive on the reorganization and winding up of insurance undertakings.
This public notice by the Finnish Financial Supervisory Authority is based on section 15 a of the Act on Foreign Insurance Companies (398/1995), as amended by Act 525/2008, and section 15 b, as amended by Act 331/2004.