Insurers pay out to Ardonagh over ETV and UCIS schemes

Professional indemnity insurers have paid out at least £400,000 to Ardonagh over the mis-selling of financial products.

The mis-selling was done by one of its former subsidiaries, Towergate Financial, which gave poor pensions advice to customers.

Ardonagh has been pursuing its insurers, and had previously said it could claim up to £12m from PI insurers to offset the final bill.

And in the group’s quarterly report it was revealed that up to 31st March this year £400,000 had been received from professional indemnity insurers.

In their attempts to redress this bill, Ardonagh has also acquired illiquid assets held by claimants. The group has attempted to realise the value of the assets to partially offset its costs.

The quarterly report revealed so far Ardonagh had recovered £900,000 from the sale of illiquid assets.

Another £500,000 was made from the vendors of businesses previously acquired by Towergate Financial.

Towergate Financial mis-sold enhanced transfer value (ETV) schemes, which are a mechanism for transferring pensions, and unregulated collective investment schemes (UCIS), which enable investors to pool together to invest in projects.

The mis-selling happened under previous management to the ones currently heading up the business.