Independent Insurance employees who escaped redundancy will be transferred to a solvent company that will be overseen by liquidators Pricewaterhousecoopers (PWC).

Staff, who were told of the plans on Friday after the redundancies were announced, will handle the company's run-off.

A PWC spokeswoman said the remaining employees would retain all their rights in the new company. She said no more redundancies were planned.

It has been speculated that the company will be called Independent Insurance Run-off.