The Accident Group (TAG) imploded rapidly over the last couple of months, accumulating losses of £60m in the eight months to April, according to reports.
According to reports, TAG's balance sheet declined dramatically in the months before its parent group, Amulet, was put into administration.
Amulet made pre-tax profits of £14.3m in the 12 months to August 2002. However it made a net loss of about £27m in the eight months to April, according to The Independent newspaper.
Last month's ruling by the country's senior costs judge effectively halved the amount of costs recoverable by claims firms like TAG. In addition up to 50% of the cases on its books failed when fought through the courts.
The failure rate made insurers nervous and prompted them to put an end to writing new business with TAG.
