Grant Thornton announces first ever: initial dividend
payment of 100 per cent for insolvent insurer
11 May 2007
Grant Thornton's Financial Markets Group is delighted to announce a
first ever: the initial dividend has been set at 100% for UIC
Insurance Company Limited, which is in provisional liquidation and
in a scheme of arrangement. This dividend declaration is expected
to be followed by two more, which will eventually see creditors
receive final payouts totalling 400% more than the worst case
estimate made soon after the company became insolvent.
The initial dividend percentage of 100% was set by Ipe Jacob and
Richard White, Joint Scheme Officers, advised by the Scheme
Actuary, Stuart Shepley, who is a partner in the Financial Markets
Group of Grant Thornton and head of the firm's actuarial
practice.
The second and third dividend declarations are likely to
be made within the next 12 months and 24 months
respectively.
Ipe Jacob, Senior Partner within Grant Thornton's
Financial Markets Group and lead scheme officer says: "When we took
this case on we estimated a worst case outcome of some 26p in the
pound. We are obviously delighted to inform creditors today that
they will receive a total dividend payment which will exceed 100p
in the pound over the coming 24 months."
"This has been an extremely complex case, spanning more
than 10 years. For those who would have pursued the industry norm
of a speedy scheme, followed by long drawn out dividend payments,
patience has, after all, proved to be a virtue," continues Jacob.
"The entire team has worked incredibly hard to help creditors
achieve what can only be described as an extraordinary
result."
"I have been in this business for more than 30 years, and
have never seen or heard of an equivalent result, but it is one
very unlikely to be replicated as the circumstances of UIC were
unique," concludes Jacob.
Alan Peake, former Technical Adviser to the Lloyd's
Underwriters Association said: "I would like to add, from my
personal experience of 28 other insolvent estates in the insurance
market, the UIC estate was without doubt, the most involved. Given
that background, I commend Grant Thornton for the exceptional
outcome achieved for creditors."
Today's outcome comes hot on the heels of the recent
result Grant Thornton secured for the creditors of Pan Atlantic
Insurance Co. Ltd (PAICO), which was 38% higher than anticipated
when the scheme of arrangement was announced.