Gilbraltar’s highest court has heard the case of Enterprise Insurance following its recent collapse that affects 14,000 policyholders.
The Gibraltar Financial Services Commission (GFSC) said that it has applied to the Supreme Court for the appointment of a provisional liquidator for the bankrupt insurer.
The insurance company has been described in court as “hopelessly insolvent” with an asset shortfall of up to £18 million, the
Irish Times reported.
According to the report, Gibraltar Supreme Court chief justice Anthony Dudley said that the estimated £11m to £18m shortfall between the insurer’s assets and liabilities was a “huge deficiency.”
The court heard GFSC’s application and appointed Frederick David John White of accounting firm Grant Thornton as provisional liquidator for Enterprise.
The liquidator’s main responsibilities are to protect the assets of the company and to establish its financial position, the GFSC said.
With the support of the commission, the liquidator will focus on dealing with claims and will work with relevant compensation schemes to achieve the “best possible outcome” for policyholders.
On July 22, the GFSC ordered Enterprise to immediately cease writing new insurance business and prohibited the company from making any payments.
Enterprise said there has been a “significant deterioration” in the company’s financial position and that it has been declared insolvent.
“The shareholders of the company have been unable to contribute additional capital into the company,” the 12-year-old insurer said.
Zurich subsidiary Wrightway Underwriting will refund outstanding premiums to the affected 14,000 motorists who are insured by Enterprise.
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