OIC INCREASES PAY-OUT, PWC CONTINUES SCHEME TALKS

OIC Run-Off Ltd and The London & Overseas Insurance Co Ltd have set a revised payment percentage of 48%, up from 45%. Those policyholders whose claims are yet to be established in accordance with the existing scheme of arrangement will receive a payment as soon as the liabilities of OIC (formerly Orion Insurance Co) and L&O’s liabilities to them are established. Policyholders where liabilities have been established will receive an additional payment within 90 days. PricewaterhouseCoopers joint scheme administrator Dan Schwarzmann said that discussions were continuing with Nederlanden Overseas Finance & Investment Co Unlimited (NNOFIC) and the Institute of London Underwriters (ILU) over an amending scheme of arrangement that would crystallise future liabilities and permit the run-off to be closed. PwC said that “the joint scheme administrators and the creditors’ committee both believe the overall proposals to be in the best interests of all scheme creditors and, if an amending scheme of arrangement is to be issued to scheme creditors, it should be during 2008”. By the end of last year OIC and L&O had paid $191m to qualifying ILU policyholders in respect of established liabilities covered by the NNOFIC/ILU arrangements, and $297m to other scheme creditors whose liabilities had been established. Whitting Insurance Services is managing the run-offs.