Devon-based broker Tangent South West Insurance Services has collapsed with estimated debts of £1.3m.

It is understood that about 80 creditors may be owed funds by Ronald Carne, who traded as Tangent South West, including up to 20 insurance companies.

NIG is among those owed money. It submitted a High Court claim against Carne for uncollected premiums of £86,000 on 14 February.

On 3 April, Carne applied for an individual voluntary arrangement; a structured arrangement to repay creditors and avoid bankruptcy.

Accounting firm Bishop Fleming will host a creditors' meeting at 10.30am on 25 April, when creditors will vote on whether or not the individual voluntary arrangement can proceed.

If the arrangement is approved, it will prevent any interim proceedings, such as NIG's claim, from being pursued.

Creditors will then be required to submit proof of their claim and the debts will begin to be paid, commencing with secured creditors.