OIC Run-Off Ltd (formerly Orion Insurance) and The London and Overseas Insurance Company Ltd (L&O) have revised their payment percentage to scheme creditors, bringing it up to 53 per cent. This represents an increase of 3 per cent on the previous payment level.
‘Creditors who have received a payment of 50 per cent of their liabilities established under the scheme of arrangement will receive an additional 3 per cent payment within 90 days,’ explains Dan Schwarzmann, partner, PricewaterhouseCoopers LLP and joint scheme administrator of OIC and L&O. ‘Policyholders whose claims are yet to be agreed will receive payment as soon as OIC and L&O’s liabilities to them become established.
‘Established liabilities covered by the arrangement between Nationale-Nederlanden Overseas Finance and Investment Company Unlimited (NNOFIC) and The Institute of London Underwriters (ILU) will continue to be paid in full in accordance with the specific arrangements within the scheme of arrangement.’
OIC and L&O’s existing scheme of arrangement became effective on 7 March 1997 and the initial payment level was set at 15 per cent in October 1997. By the end of 2009, OIC and L&O had paid US$208 million to qualifying ILU policyholders in respect of established liabilities covered by the NNOFIC/ILU arrangements and US$506 million to the other scheme creditors with established liabilities.
Armour Risk Management, the new run-off management company for OIC and L&O, will be processing the additional payment during August and September 2010. Enquiries should be directed to Armour on +44 (0)207 347 5741.