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Member, Beacon International Group, Ltd.
LONDONReliance National Insurance Company (Europe) Ltd. has entered into a solvent scheme of arrangement, having received approval from the English High Court late last week.
RNICE was the London-based European subsidiary of Philadelphia-based Reliance Insurance Co., which went into runoff in 2001 when the company was subject to a rehabilitation order by the Pennsylvania insurance commissioner.
In spite of opposition from some policyholders, the majority of creditors of RNICE approved the proposed scheme of arrangement at a meeting in February this year. The Court approval of last Friday went through unopposed, as several policyholders had either withdrawn their opposition or had since commutated their policies with RNICE.
With the final hurdle now overcome, the scheme became effective as of October 20, 2006.
Under the scheme of arrangement, no more claims will be paid to policyholders until they have submitted the relevant forms and due process is completed, according to Richard Whatton, chairman of RNICE.
Policyholders have until May 21 next year to claim for unpaid claims and incurred, but not reported claims.
RNICE was acquired by Whittington Investments (Guernsey) Ltd., part of Singapore-based Whittington Group Pte. in October 2003.