Highlands Insurance Company (U.K.) Limited
| Date of insolvency: | 1 November 2007 |
| Effective date of scheme: | 22 September 2011 (Cedant Scheme) |
| Appointment holders: | Dan Schwarzmann Douglas Nigel Rackham |
| Financial information: | Last accounts filed 31 December 2005 |
| Current payment percentage: | Cedant Scheme Creditors 16.7% |
| Key contacts: | Alison Kaplan E-mail: alison.b.lieberman@pwc.com |
| Company background: | Highlands Insurance Company (U.K.) Limited ("HUK") was incorporated on 18 November 1974 and is a wholly owned subsidiary of Highlands Insurance Group Inc ("HIGI"). Together with several subsidiaries, HIGI filed for a petition on 31 October 2002 for relief under Chapter 11 of the United States Bankruptcy Code that became effective on 31 March 2003. Between 1983 and 1994 HUK wrote predominantly London market and international excess of loss business, ceasing to underwrite new business in January 1994. Since this date HUK has been primarily involved in the agreement of claims and the making of reinsurance collections. PRO Insurance Solutions Limited were appointed to manage the run-off of HUK business on 1 November 2003. Following a series of reviews in respect of HUK's financial position undertaken during the second and third quarters of 2007, the company Directors concluded that HUK was insolvent on a balance sheet basis and was unlikely to be able to pay its debts. Accordingly the Directors filed an application to appoint an Administrator on 25 October 2007. Dan Schwarzmann and Mark Batten were subsequently appointed as Administrators on 1 November 2007. On 18 June 2009, creditors with claims arising from contracts or policies of direct insurance, as opposed to contracts of reinsurance, voted on and approved a proposed Scheme of Arrangement (the “Direct Scheme”). The Direct Scheme became effective on 19 August 2009 and the deadline for submitting a Final Claim Form was 15 February 2010. Following payment in full of all Establish Liabilities, the Direct Scheme has now been finally implemented. On 10 August 2011, a separate Scheme of Arrangement for creditors with claims arising from contracts or policies of reinsurance (the “Cedant Scheme”), was voted on and approved by the requisite majority of Scheme Creditors. After receiving sanction in the UK and permanent injunctive relief under Chapter 15 of the US Bankruptcy Code, the Cedant Scheme became effective on 22 September 2011, the deadline for submitting a Final Claim form was 20 March 2012. HUK moved from Administration to Creditors’ Voluntary Liquidation with effect from 17 April 2012. Following agreement of all claims submitted under the Cedant Scheme, an initial payment percentage of 15% was set in consultation with HUK’s Creditors’ Committee. Payments were made to Cedant Scheme Creditors during February 2014. Following Mark Batten’s retirement, Douglas Nigel Rackham was appointed as Joint Liquidator by an Order of the High Court of Justice (Chancery Division) dated 21 July 2017, which became effective on 4 August 2017. Following a meeting of Scheme Creditors on 16 October 2017, his appointment as Joint Scheme Administrator was also ratified. In January 2022, the Joint Scheme Administrator’s advised Cedant Scheme Creditors that a revised and final Payment Percentage of 16.7% had been set, representing an increase of 1.7% on the initial Payment Percentage paid in February 2014. All final dividend payments have now been issued by the Joint Scheme Administrators to Cedant Scheme Creditors. |
| Latest update and final actions: | The Joint Liquidators have submitted a request to the Financial Conduct Authority for cancellation of permission to carry on regulated activities. The Cedant Scheme has now been finally implemented - refer to the Notice for further details.
The Joint Liquidators are undertaking all actions required to conclude the CVL of HUK, which is expected to complete in June 2024. |
| Liquidators' Progress Reports: | Creditors are updated on the progress of the liquidation of HUK through the Joint Liquidators’ annual progress reports and via this website. Each report provides an account of the steps that have been taken in the liquidation of HUK during that year. To view the past reports please click on the applicable link below:
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| Employers’ Liability claims | In 2012 the Company agreed with the Financial Services Compensation Scheme (FSCS) that all future Employers’ Liability claims would be administered by the FSCS. Any potential claim should therefore be directed to the FSCS at insurance@fscs.org.uk |
| Information correct as at: | May 2024 |
Contact us
Restructuring and Insolvency Partner, UK Head of Insolvency, PwC United Kingdom
Tel: +44 (0)7974 332659
Carla Matthews
Partner - Head of Contentious Insolvency & Asset Recovery, PwC United Kingdom
Tel: +44 (0)7483 365547
