Highlands In Administration

Insurance firm Highlands Insurance Company has today been placed in administration under the eye of PriceWaterhouseCoopers as a result of insolvency proceedings raised against them by overdue creditors.

The insurance group was placed into administration, whereby its assets will be managed by representatives of the accountancy firm in order to provide repayment to the firms many creditors, including policy holders who may be left without cover.

The firm was placed in the hands of Mark Batten and Dan Schwarzmann upon announcement by the directors of the company that it was in fact insolvent and unable to meet its outstanding obligations.

Highlands Insurance Company was involved largely in writing for London markets and excess of loss trades since 1982, after its inception back in 1974. The move today will see the company ringfenced under the guidance of the administrators in order to attempt to work itself out of its financial problems.

The Highlands balance sheet to year end 2005 reflected net liabilities of in excess of £75 million, highlighting the depth of its financial problems in the run up to these proceedings. The company directors were today forced to admit that the company was in fact unable to meet its liability, triggering the move to administration.

Speaking today, representatives from PWC said that they would look to finding the most equitable solution for all creditors with claims outstanding, giving priority to those that deserve payment more urgently than other creditors, whilst trying to realise a suitable dividend return.

The last insurance group to enter administration as a result of their insolvency was three years ago, where AA Mutual were passed into the hands of administrators for the benefit of its creditors.

Category: Companies News, Insurance News