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Member, Beacon International Group, Ltd.
LONDON--The Financial Services Authority has publicly censured The Underwriter Insurance Co. Ltd. and imposed a fine on its former chief executive officer.
The Underwriter, based in London, went into solvent runoff last year after posting a loss of £12.4 million ($18.0 million) in 2001.
According to the FSA, the U.K. insurance regulator, the company was being censured for breaching one of its "Principles for Business," which requires a company "to be open and cooperative with the FSA." Former CEO Keith Rutter was fined for breaking two of the FSA's "Principles for Approved Persons," which state that an FSA-approved person must act with integrity and deal with the FSA in an open and cooperative manner.
The Underwriter, which specialized in U.K. liability insurance, was authorized by the FSA in 1999.
The FSA said in a statement that the company had, in 2001 and 2002, split insurance contracts and deferred premium income into the following year, breaching premium income limits imposed by the FSA. This meant, the FSA noted, that the company's reported premium income "did not accurately reflect the underwriting risks to which it was committed."
Mr. Rutter, who is now a business development consultant at London-based broker Jardine Lloyd Thompson Group P.L.C., was fined £20,000 ($37,896).