Miles Smith has vowed to pay off its debt to the London market in the coming two years following its relaunch last week.
The liability and motor brokerage was forced into creditors' voluntary liquidation in May, after its parent company Greatminster Group failed to repay its inter-company debt to Miles Smith.
According to liquidator HLB Kidson's statement of account, the company had debts of more than £4m, more than half of which was related to marine and international business that was not passed on to Miles Smith. It is understood the brokerage has already paid off more than £1m of the remaining shortfall.
It is now considering re-applying for Lloyd's accreditation, which it lost when it went into liquidation.
Managing director Paul Chainey said the company had continued to trade with all of its pre-liquidation contacts and had received endorsement from all 38 trade organisations for whom it acted.
He said this was demonstrated by the number of high profile underwriters, from groups such as BR Smith, Wren, Markel, Wellington, Pounds Gates and Wallace, at last week's launch party.
"The only reason we're here is that, when we called on 65 years of goodwill, they answered," he said.
He swore the market's act of faith in Miles Smith would be repaid.
"Our biggest commitment has to be the liquidator, which is our goal for the first two years," he said.
The new Miles Smith was created in a series of clever financial manoeuvres, as reported by Insurance Times in May.
Miles Smith chairman Robin Saddler said, when it became apparent Greatminsters' problems were insoluble, he and Chainey unsuccessfully attempted to sell Miles Smith.
"We hawked it around the city for two weeks and talked to everyone worth talking to," he said.
Unable to find a buyer, Kidsons allowed the directors to use an old run-off company, Miles Smith Reinsurance, to buy the Miles Smith book. Lloyd's appointed receivers Pricewaterhousecoopers for Miles Smith's broking assets account and agreed to allow Miles Smith Re to handle the run-off of Miles Smith.
"Because the people who'd always dealt with the clients were going to collect the premiums, they stood a better chance of getting the money," Robin said. "And we were able to pay the underwriters much more quickly because of that."
Chainey said there were four further phases of the recovery:
All existing Lloyd's facilities were replicated within the service companies of existing underwriters.
Miles Smith's broking director Simon Brooke-Smith secured the support of the liability market. Chainey secured all existing composite insurance markets. Motor director Tony Madden ensured the support of the underwriters of their specialist motor account.
Miles Smith Re was then publicly listed as MS plc. It has continued to trade under the original Miles Smith name.
