Enterprise Insurance Liquidator Uncovers Regulatory Breaches

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A liquidator appointed to Gibraltar-based Enterprise Insurance, which was active in the Irish motor market in recent years, has found the company had committed a number of regulatory breaches before it collapsed, the Irish Times reported. In a report submitted to Gibraltar’s supreme court last week and published on Friday, the liquidator, Freddie White of Grant Thornton (Gibraltar), found that Enterprise failed to set aside enough technical reserves to cover the risks it was insuring. It also failed to maintain a sufficient capital cushion for unexpected losses, or margins of solvency, as required by law, and underwrote 10,000 roadside assistance policies in the UK that it was not authorised to underwrite. Mr White said these breaches, while not exhaustive, provided a basis for an investigation into Enterprise Insurance by the Gibraltar Financial Services Commission, which was launched last week. The company, which imploded in July, has an estimated £151.5 million (€170.3 million) of liabilities to policyholders, net of reinsurance, and an asset shortfall of £94.4 million, according to the report. Read more.
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