The reinsurance company that wrote contracts for the failed Independent Insurance and for Equitable Life is set to face legal action from their creditors.
Lawyers for the two creditor groups are lo ...
The reinsurance company that wrote contracts for the failed Independent Insurance and for Equitable Life is set to face legal action from their creditors.
Lawyers for the two creditor groups are looking at the possibility of suing Irish European Insurance Company (Ireco).
Ireco, which is owned by US firm GE Capital, is already being investigated by the Financial Services Authority (FSA) for its dealings with Equitable Life.
Now Class Law, the law firm appointed by Independent's creditors, is looking to sue Ireco for compensation. It is also pursuing Independent's auditors, KPMG.
Creditors of Independent Insurance Group (CIIG) chairman Kevin Young said: "As the activities of the CIIG have now entered the crucial and highly complex realms of potential legal actions, the committee has instructed Class Law to consider the group's position in tandem with that of the policyholders of Equitable Life."
In July last year, Insurance Times reported the FSA may be sued, after revelations that it knew as far back as December 2000 that Independent's French company was reserving claims for virtually nothing.
Now Class Law has indicated it will sue the FSA. But the FSA is fighting allegations that it failed to act on a "tip-off". An FSA spokesman said: "We will vigorously fight any action taken against us."
