Solvent scheme of arrangement sanctioned by High Court on 9 July

A solvent scheme of arrangement for the reinsurance business written through the GLM Pool was sanctioned by the High Court on 9 July 2007.

The companies in the pool are: Ecclesiastical Insurance Office, GLOBAL General and Reinsurance Company, MMA IARD Assurances Mutuelles, Swiss Re and Axa Insurance UK. PricewaterhouseCoopers is the scheme adviser to four of the five scheme companies.

Mr Justice Lewison acknowledged the use of an independent vote valuer for the vote valuation procedures and was also satisfied that, in this case, one class of creditor was appropriate.

Dan Schwarzmann, partner at PricewaterhouseCoopers, said: “Solvent schemes of arrangement continue to be a flexible and effective solution to terminating the run-off of portfolios of business. This is reinforced by the fact that there have been six solvent schemes sanctioned in the last week, of which PricewaterhouseCoopers are the scheme advisers to five."

The solvent scheme became effective on 10 July 2007. The final claims submission date is 25 January 2008.

PRO Insurance Solutions is the scheme manager and Speechly Bircham P is the legal adviser.