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Daily Insurance Industry News
Thursday 13th of December 2018
February 14, 2008

Administration for ESR after fraud scandal

by David Masters

Story link: Administration for ESR after fraud scandal

Lloyd’s insurer ESR has gone into administration after being at the centre of a multi-million pound fraud.

ESR have appointed two administrators from Grant Thornton, who will be selling off two of the company’s three divisions. The surety bond division – which was at the centre of the scandal – has been written off as beyond redemption and will not be sold.

ESR issued a statement this week, which read: “The Directors of ESR Insurance Ltd have appointed Andrew Hosking and Stephen Akers, both partners of Grant Thornton, as Administrators of the company.

“The company has been left with significant potential claims from third party creditors. These contingent liabilities, together with the loss of income from its Surety Bond Division, have resulting in the Directors considering the company insolvent and hence Directors have decided that the appointment of Administrators is the only way forward for the company.”

Grant Thornton’s partner Andrew Hosking added: “It is hoped that through the administration process, the company’s other two Divisions can be preserved and sold for the benefit of the company’s creditors and that other potential realisations can be made in order to afford a compensatory package for those with claims.”

 

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