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1. History of EAIC and the EAUA Pools EAIC was incorporated on 28 June 1929 to write insurance business and was initially a subsidiary of Bowring Services Limited (formerly C T Bowring & Co Limited).In July 1980, Bowring Services Limited, together with EAIC, was acquired by Marsh & McLennan Companies, Inc. In October 1983, The Marsh & McLennan Companies, Inc sold EAIC to English & American Group (which at the time of the acquisition was known as London & Gloucester Limited), which provided insurance-related services through its subsidiary companies. EAIC's ultimate holding company was therefore English & American Group, which has now been dissolved. English & American Insurance Holdings PLC (which has also now been dissolved), which was a subsidiary of English & American Group , was EAIC's intermediate holding company.
On 19 March 1993, a winding-up petition was presented by EAIC acting by its directors, and Anthony James McMahon and
Roger Smith, partners in KPMG Peat Marwick, were appointed as provisional
liquidators by order of the English High Court.
Both holding companies of EAIC gave guarantees to the ILU in relation to
certain of EAIC's liabilities. The
appointment of provisional liquidators to EAIC and the presentation of a winding-up petition against EAIC had immediate financial consequences for such holding
companies, as their assets were insufficient to meet their potential liabilities
under the guarantees. On
EAIC commenced underwriting in 1929 and since that date has been involved in a
number of underwriting activities. EAIC's active underwriting operations
immediately prior to November 1992 included its participation in the EAUA Pools.
Pooling is a method of spreading risk whereby a combination of insurers, writing
a specific class of insurance, agree to share the premiums and losses in agreed
proportions. Details of the type of
business written by the Pools is set out below. 2. Summary of business written by the Pools
General treaty reinsurance account effective for all years, mostly comprising property and casualty
business;
Retrocession treaty (LMX and Non LMX) account effective all years, property and
casualty business from 1977 to
1984 and property business only from 1985 onwards;
Retrocession treaty account;
US binders, from 1977 to 1986;
International agencies written 1985 to 1987, which was a property based account;
UK Home Foreign account comprising property and some casualty, written from 1981 to 1987; and
Special risks, written mainly from 1985 to 1992.
This TAUS Pool was an aviation account underwritten in
The 'Transglobe Re Pool', the underwriting years of account for this pool were 1982 and 1983 and the business included a mix of facultative, proportional reinsurance and excess of loss. In general, all of the accounts provided reinsurance protection to direct aviation underwriters of mainly airline, airports and aviation products manufacturers.
E&A Re was an underwriting agency established by the English & American Group in
3. Non-Pool - English and American
Insurance Company ("EAIC"), and City International Insurance Company Limited
EAIC commenced underwriting in 1929 and since that date has been involved in a number of underwriting activities.
EAIC�s active underwriting operations immediately prior to November 1992
included its participation in the English & American Underwriting Agency Limited
(�EAUA�) Pools and the Transglobe Underwriting Management (Guernsey) Limited
(�Transglobe Guernsey�) Pool.
EAIC also had a number of discontinued or run-off operations prior to November 1992 now commonly referred to as �non pool�.
These included:
the
The ANMC, BLAN, BPI and BEAF fronting facility arrangements written between 1977
and 1986.
The Bowring International Reinsurance Group (BIRG) account which wrote
London Market Excess of Loss (�LMX�) reinsurance between 1967 and 1983.
An International account which encompassed various overseas agency
operations. These were discontinued in 1985.
A Home account which consisted of various agencies in the
City International Insurance Company Limited is also including its non-Pool Business within the
Scheme, namely all Liabilities arising by it (or by its predecessor in title) or
in connection with any reinsurance or contract of insurance or reinsurance
underwritten including, without limitation, in respect of its own non-marine
reinsurance business during the years 1985 to 1992. Classes of business
underwritten included facultative property, facultative liability, miscellaneous
facultative business, proportional reinsurance property, proportional PA/KR,
proportional property, bloodstock, non-proportional liability and
non-proportional property. Since April 1996, the run off of this account has
been managed by Capita Commercial Insurance Services Limited (formerly Claims
Management Group Limited). This non-pools business amounts to less than 4 percent
of this company's overall underwriting liabilities
Provision was made in the Existing ICS Scheme for Oberon Pool Claims to be submitted to St Paul Re, and paid by that company. Those provisions are not amended by the Scheme and ICS has no remaining liability or obligation whatsoever to make payment in respect of those claims.
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