HW FISHER administrators have been called to London-based insurance business Morgan Insurance Broking.
Brian Johnson and ex-president of insolvency trade body R3 Nick O’Reilly (pictured), both partners at HW Fisher, have been appointed to handle the broker’s affairs which have ceased trading – Accountancy Age’s sister publication Insurance Age reports.
According to the broker’s website, it forms part of Morgans Group, which provides managment insurance services.
A statement sent to Insurance Age confirmed: “The failure of Morgans Insurance Broking is largely as a consequence of obligations that it took on in respect of independent financial advice given by Morgans Independent Advisory plc, which went into administration in 2009.
“The joint administrators are working closely with the Financial Services Authority.”
The statement added that Morgans sold its general insurance book prior to the administrators’ appointment and that client services will continue uninterrupted.
According to the broker’s latest accounts filed at Companies House, Morgans’ turnover stood at £1.9m for the year ended 31 March 2011. This was up on the £1.4m posted for 2010.
However, post-tax profit plummeted 67% to £146,200 from £439,893, despite staff numbers increasing from seven to 16.
A statement on Morgans’ website confirmed: “Brian Johnson and Nicholas O’Reilly, of Fisher Partners, [the insolvency arm of HW Fisher] were appointed joint administrators of Morgans Insurance Broking Limited (“MIB”) on 15 February 2013.
“The affairs of MIB are being managed by the joint administrators. The joint administrators act as agents of MIB and as such both they and their staff contract without personal liability.”