This page identifies the scope of the business covered by the proposed Pool
The Scheme Companies (“the Companies”) each underwrote
insurance and reinsurance business in pooling arrangements through one or more
of the pools described below. 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. In this case the affected pools
are the EAUA Pools, the TAUS Pool, the Transglobe Re Pool and the E&A Re Pool
(together referred to as the "Pools").
The Pools underwrote risks until the end
of 1992, at which time they ceased accepting new business and went into run-off.
The proposed Pool Scheme will apply to the Companies' 'liabilities' in respect
business underwritten or administered by EAUA specified (and not excluded)
below ("EAUA Pools Business");
certain Liabilities of individual Companies which are not EAUA Pools Business,
(referred to as "Other Liabilities"), which are specified (and not excluded)
The proposed Pool Scheme will apply only to EAUA Pools Business and Other Liabilities.
SCOPE OF SCHEME – LIABILITIES CONSTITUTING SCHEME CLAIMS
A Scheme Claim is any Liability of the Scheme Company which is a Pool Liability
or Other Liability referred to below.
The Scheme Companies underwrote
Insurance contracts through one or more of the following pools:
the Marine Pool, also known as
the English and American Marine or “M” Group or Bowring Marine Group, which underwrote
from 1954 to 1992.
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).
the Non-Marine Pool, which 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
the TAUS Pool was an aviation
account underwritten in Guernsey from 1990 to 1992.
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.
the E&A Re Pool. E&A Re
was an underwriting agency established by the English & American Group in
Brussels in June 1981.
Certain of the Scheme Companies
acquired their participations in the above pools through accepting a statutory
transfer and novation of other companies’ underwriting participations in those
pools. Those transfers of which the Scheme Manager is aware are set out in the
table at paragraph 5 below. The Scheme Companies and the names in which they
wrote Insurance Contracts are set out on the Scheme Companies page.
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 London Market Non-Marine account,
which comprised London Market non-marine and some aviation business written
principally between 1952 and 1976
the ANMC, BIAN, 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 UK. This business was also discontinued in 1985
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.
City International Insurance Company Limited is also including its non-Pools 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.
The Insurance Corporation of Singapore (U.K.) Limited. 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. Pool Liabilities
Save as excluded in paragraph 4, "Pool Liabilities" are all Liabilities arising
under or in relation to the Insurance Contracts referred to in paragraph 1.1 above.
For the avoidance of doubt, Pool Liabilities include all Liabilities arising under any
agreement pursuant to which an insurance broker is entitled to brokerage or
commission from the Scheme Company in respect of placing an Insurance Contract
referred to in paragraph 1.1 above, and Liabilities arising under rights of
contribution and subrogation in respect of such an Insurance Contract.
3. Other Liabilities
3.1 "Other Liabilities" are:
all Liabilities of EAIC which are neither Pool
Liabilities nor Liabilities excluded by paragraph 4 below;
all Liabilities of City
International Insurance Company Limited which are neither Pool Liabilities nor
Liabilities excluded by paragraph 4 below;
4. Liabilities which are not Pool or
4.1 Pool Liabilities and Other Liabilities shall not
Liabilities in respect of fees,
costs and expenses (including any tax thereon), in respect of services or
advice, payable to service providers, excluding brokers, but including, without
limitation, lawyers and loss adjusters, unless they are liabilities incurred by
EAIC or ICS before the Record Date, as defined within the Scheme.
In the case of EAIC only,
Liabilities under policies signed and issued by the Institute of London
Underwriters on EAIC's behalf with an inception date between 3 July 1980 and 6
October 1983 (both dates inclusive) which have not become Established Scheme
Liabilities under the Existing EAIC Scheme by the Effective Date ("the Marsh Mac
In the case of Nippon Insurance Company of Europe Limited only, Liabilities under any Relevant Employer's Liability policy or cover written by that company.
If and to the extent that (i) the Scheme is not approved by the requisite statutory majorities of creditors under Relevant Employer's Liability (EL) Covers at the separate class meetings (or at any adjournment thereof) convened for those creditors of each affected Scheme Company to vote on the Scheme, or (ii) the Scheme is not subsequently sanctioned by the Court in respect of the class of creditors of each affected Scheme Company comprising creditors under EL Covers, in either or both cases, the EL Covers written by the affected Scheme Company concerned.
5. Details of Business Transfers Relevant to EAUA Pools
names of transferor
English & American Insurance Company Limited
Providence Capitol Life Assurance Company Limited
Slater Walker Life Assurance Company Limited, Slater Walker
Insurance Company Limited and Arrow Life Assurance Company Limited