On Monday 9th December 2013, Millburn Insurance Company Limited (“Millburn”) was placed into administration by the High Court and Neil Mather and Christopher Morris of Begbies Traynor were appointed as Joint Administrators.
Millburn is a specialist underwriter for businesses and individuals in a range of sectors including property, educational services and motor sport in the UK, Germany, Sweden and Ireland and has circ. 19,000 policyholders in the UK. Following a review of the business by its regulator the Prudential Regulation Authority (PRA) in August and September, Millburn voluntarily ceased to write new business. It has now been placed into administration. No redundancies will be made as the company predominantly sold via third party cover holders and brokers, and had no direct staff.
Insurance policies issued currently remain valid but, whilst the Company’s financial position is being assessed, it is unable to pay out on any claims. Policyholders, including those with claims, should contact their insurance brokers for assistance in the first instance. Eligible policyholders may also be entitled to compensation from the Financial Services Compensation Scheme (FSCS).
Millburn is the first insurer to fail since the Bank of England took over as the regulator of insurance companies via the Prudential Regulatory Authority in April this year.
Begbies Traynor is currently assessing the financial position of the company and will release further information as soon as possible.
Neil Mather, Partner at Begbies Traynor commented: “Over the coming weeks we will be working hard to assess the Company’s financial position and agree the best course of action. It is a highly unusual event for an insurance company to find itself in administration; this is the first we have seen for almost five years.
“Begbies Traynor has been appointed due its experience in this specialist area, which includes the last UK regulated insurance company to go into administration, The Exchange Insurance Company in 2009. Using our wealth of experience of handling insurance related insolvencies we are now focussed on securing the best outcome for Millburn’s stakeholders.”
For more information or enquiries regarding the affairs of the company, please click here.
Neil is a Chartered Accountant and Licenced Insolvency Practitioner. He previously worked at Deloitte for 13 years in the Corporate Recovery team.
He works on large and small corporate insolvencies and restructurings, with a particular emphasis on cross border matters, financial services and insurance. Recent cases include Carlyle Capital Corporation, based in New York & Guernsey with $23 billion of assets and liabilities; Exchange Insurance Co; Alphasteel steel works in South Wales and Silverjet.