Blue Swan Insurance (Jersey) Limited (2006-04-07)

Summary

This is a public statement issued by the Jersey Financial Services Commission under Article 43(2) of the Insurance Business (Jersey) Law 1996 concerning Blue Swan Insurance (Jersey) Limited. It updates an earlier notice from 6 February 2006 that had closed the company to new business, and warns policyholders and the public about the company's deteriorating financial position and pending winding up.

• Winding up application: The Directors of Blue Swan Insurance (Jersey) Limited have applied to the Royal Court in Jersey for approval to wind up the company and appoint a liquidator; a preliminary hearing was held 31 March 2006 and a further hearing was set for 28 April 2006.
• Cause of difficulties: The Directors state the company's financial difficulties arose from premium income being diverted from the company, and a police investigation has been instigated.
• Warning to policyholders: Holders of unexpired policies are told to assume claims may not be met in full and that their policies may not fully indemnify covered risks; they are strongly advised to contact their broker immediately to arrange replacement cover.
• Claims already submitted: Policyholders who have already submitted claims are advised to take no further action at this time, pending further announcements.

The notice is informational and protective in nature, aimed at warning existing and prospective policyholders rather than imposing new regulatory requirements on other licensed insurers. The Commission directs readers to its website for the list of regulated insurance businesses and the earlier public statement on this company.

Applies to

insurance companies, policyholders

Deadlines

• 28 April 2006: Second Royal Court hearing on the application to wind up Blue Swan Insurance (Jersey) Limited and appoint a liquidator