Gibraltar-based Enterprise Insurance committed several regulatory breaches before it collapsed, according to a liquidator appointed to the firm.
The liquidator, Freddie White of Grant Thornton, said Enterprise failed to have sufficient technical reserves to cover the risks it was insuring, the
Irish Times reported.
Enterprise also failed to maintain enough capital cushion for unexpected losses as required by the law, White added.
He further revealed that Enterprise underwrote 10,000 roadside assistance policies in the UK even though it was not authorised to do so.
White disclosed his findings in a report submitted to Gibraltar’s Supreme Court that was published on November 4.
“The company wrote a complex multi-line mixed portfolio of insurance without adequate underwriting expertise,” White said in his report, as quoted by the
Irish Times.
“It appears that the motor and solicitor’s professional indemnity insurance business in particular have accumulated large underwriting losses.”
Based on White’s report, Enterprise has an estimated £151.5 million of liabilities to policyholders and an asset deficit of £94.4 million.
The report also valued the cost of motor loss claims at £143.8 million, including £83.9 million in the UK.
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