Folksam International Insurance Company (UK) has been put into administration as of 19 July.
PricewaterhouseCoopers (PwC), which has been appointed administrator, said this was the first time an in ...
Folksam International Insurance Company (UK) has been put into administration as of 19 July.
PricewaterhouseCoopers (PwC), which has been appointed administrator, said this was the first time an insurance company had been placed in administration following the introduction of new insolvency legislation on 31 May 2002.
As a result policyholders may receive some payment earlier than they otherwise would have.
The company's directors concluded that there was "insufficient certainty" that the company's insurance operations could be run-off on a solvent basis.
PwC partner Dan Schwarzmann said: "As a priority I will be seeking to determine the financial position of Folksam (UK). I will also be working with policyholders to develop a plan to enable liabilities to be paid, even if it is only part payments, at the earliest opportunity."
He also said it was a possibility a scheme of arrangement under section 425 of the Companies Act will be proposed to creditors in due course. Policyholders should continue to submit claims information to the company in the normal manner.
Folksam ceased writing business and went into run-off on 31 December 1996. It was a wholly-owned subsidiary of Folksam Holdings (UK) Ltd, which itself was a wholly-owned subsidiary of Sweden-based Aterforsakring AB Luap.
