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Member, Beacon International Group, Ltd.
SINGAPORECreditors and the Singapore High Court have approved a solvent scheme of arrangement for Reliance National Asia Re, formerly part of Reliance Insurance Co.
RNA Re ceased trading in 2000 and was purchased by runoff specialist Whittington Group Pte. Ltd. in 2004.
Following court approval on November 14 for the scheme of arrangement, a mechanism to wind up an insurance company, hundreds of Asian insurance companies can now present their claims, Whittington said in a statement. Claims will then be paid on the scheme payment date, with any disputed claims decided by an independent adjudicator, it added.
"Claimants now have the potential to have their claims paid in full," the company said in its statement.
In a separate transaction last month, Reliance National Insurance Co. (Europe) Ltd. entered into a solvent scheme of arrangement, having received approval from the English High Court.
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. That move came nearly one year after Reliance Insurance lost its A rating and following various unsuccessful attempts to keep the insurer's operations going.
RNICE was acquired by Whittington in October 2003.