Enterprise probe moves forward

Independent inspectors have been appointed to investigate the insurer, which has a £96 million deficit

Enterprise probe moves forward

Insurance News

By Louie Bacani

There has been a recent development in the case of EU insurer Enterprise Insurance several months after it was declared insolvent.
Earlier this week, the Gibraltar Financial Services Commission (GFSC) appointed Tony Woodcock and John Fordham of Stephenson Harwood LLP as independent inspectors to investigate the insolvency of Enterprise and the conduct of its directors and auditors.
The inspectors were appointed by a special committee of the GFSC Board, which is composed of its chair, Jonathan Spencer, and board members Adrian Coles and Paul Sharma.

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The Enterprise special committee will be the decision making panel in the regulatory inquiry relating to the insurance firm, its directors and auditors. It will also have the responsibility of acting as the GFSC audit regulation committee.
Registered in Gibraltar, Enterprise went into provisional liquidation in July 2016 and Frederick White of Grant Thornton was appointed as provisional liquidator.
In October, White submitted his report to the Supreme Court of Gibraltar confirming that Enterprise is insolvent with a prospective balance sheet deficit of some £96 million.
The Supreme Court of Gibraltar then executed an order placing Enterprise into liquidation and appointed White as liquidator.
As of February 03, the Financial Services Compensation Scheme (FSCS) had made over 33,000 return of premium payments to former Enterprise policyholders. This represents 75% of the total number of Enterprise motor policyholders.
FSCS has processed payments on all claims where the amount of the return of premium owed is known and agreed. It has been working with White, the brokers who placed the business and premium finance companies.

“We have now compensated the majority of Enterprise motor policyholders, and we’re working hard to ensure those that have yet to receive their compensation do so as soon as possible,” said FSCS chief executive Mark Neale.

Related stories:
£26 million paid to 30,000 Enterprise policyholders
Enterprise Insurance committed regulatory breaches – liquidator

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