All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

UK Court sanctions Trimark scheme

The UK High Court has sanctioned schemes of arrangement for the 48 solvent and insolvent companies that make up the Trimark 1968 and prior years pools schemes, after creditors voted “overwhelmingly” in favour at a 9 October meeting, said scheme advisor KPMG.

The Insurance Insider understands that the vast majority of reinsurers in the Trimark pool – which represent 61 original underwriting entities from various countries including Austria, France, Germany, Italy, Portugal, Switzerland, the UK and the US – were solvent.

The companies have been in run-off for over 40 years, having underwritten business from 1932-1968.

Scheme advisor Mike Walker, head of KPMG's Restructuring Insurance Solutions practice in the UK, described the sanction as “a clear indication that schemes of arrangement continue to be an effective mechanism to obtain genuine finality”.

The sanctioning of the pool and Walker’s comments will be welcomed by the legacy industry, which is still reeling after the shock Scottish Lion decision, where a Scottish judge dismiss the proposed solvent scheme in September.

Even though the two proposals are fundamentally different, any movement in the pipeline for solvent schemes will be keenly watched by market practitioners.Trimark deals with 40-year old London APH reinsurance liabilities, while Scottish Lion is an insurer that has been in run-off since 1994.

“These schemes [the Trimark Pool] were proposed following extensive consultation with creditors, which clearly contributed to the virtually unanimous support they received," Walker concluded.

Clifford Chance is the legal advisor, while Aon Limited is the scheme manager and Axiom Consulting the designated agent of the scheme manager.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree