| EAIC History |
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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.
2.1.
The EAUA Pools
The EAUA Pools comprise three
pools of business: the Marine Pool, the Aviation Pool and the Non-Marine Pool.
2.1.1.
Marine Pool
The Marine Pool, also known as
the English and American Marine or "M" Group or Bowring Marine Group, underwrote from
1954 to 1992 primarily through London market brokers and via the Institute of
London Underwriters, covering marine as well as
some non-marine (long tail liability) business, split into various accounts,
including those that covered cargo and excess of loss business, hull liability
and energy business.
2.1.2.
Aviation Pool
The Aviation Pool underwrote from 1980 to 1992 as three separate
accounts, originally in the name of TAIG (Transglobe Aviation Insurance Group),
which changed in 1983 to EAAG (English & American Aviation Group).
Business was primarily written through London market brokers and via the
Institute of London Underwriters. The accounts
were:
The Direct and Facultative account
1980 to 1992. The business written was in relation to major airlines and
manufacturers, war, industrial aid, satellite, reinsurance and rotor wing.
The General Aviation account. This was written from 1991 to
1992 and predominately written on a direct and facultative basis but there was a
large element of reinsurance involvement covering light aircraft and rotor wing
classes of business.
The Excess of Loss account written 1984
to 1992. This covered reinsurance of direct insurers and retrocession business. Additional
classes of war, satellite and personal accident were added in 1991 and 1992.
2.1.3.
Non-Marine Pool
The Non-Marine Pool underwrote
from 1977 to 1992 (including direct and reinsurance business from 1977 to 1985 and
reinsurance business only from 1986 to 1992) originally in the name of C T
Bowring Underwriting Services and Aurora Underwriters Limited through London
market brokers. The business
was split into the following classes:
2.2.
The TAUS
Pool
2.3.
The Transglobe Re Pool
2.4.
The E&A Re Pool
3.1.
EAIC
The general insurance business of Providence Capitol Life Assurance Company Limited, formerly Slater Walker Life Assurance
Company Limited, which was transferred to EAIC in 1988 and consisted of marine
and non-marine business written in the name of Slater Walker between 1972 and
1976.
3.2.
City International Insurance
Company Limited
3.3.
The Insurance Corporation of Singapore
(U.K.) Limited