Run off payments on the up, says PwC

Payments to creditors of insolvent London Market insurers surged by over 8% last year. That's according to PricewaterhouseCoopers (PwC).

PwC claims the average payment percentage from insolvent insurers that entered schemes of arrangement, increased from 36.8% to 44.9% in 2003.

Insurance partner in PwC Business Recovery Services Dan Schwarzmann said: "Schemes of arrangement continue to prove their effectiveness in the London Market. They deliver enhanced payments to creditors and achieve an orderly run off for insolvent insurers.

"Indeed schemes are becoming an increasingly popular means to bring finality to solvent discontinued insurance businesses; returning residual equity to shareholders and providing certainty of settlement value for creditors."