PracticeConsultingIndependent FD unaware of contracts

Independent FD unaware of contracts

Two executive directors of Independent Insurance, including FD Dennis Lomas, have said they knew nothing about the reinsurance contracts which are thought to have caused the collapse of the insurance company.

Lomas and deputy managing director Philip Condon issued a joint statement yesterday claiming they had not been told about the purchase of contracts that are alleged to have sparked the crisis.

It is believed the size of the contracts cancel out the benefits of another reinsurance contract taken out to bolster Independent’s reserves.

The directors’ statement came as provisional liquidators from PricewaterhouseCoopers appointed new external actuaries to replace Watson Wyatt.

Speculation over the state of the company, which is audited by KPMG, began following work by Watson Wyatt which revealed huge losses arising from claims that had not been entered into the company’s accounting system.

The actuary had previously provided Independent’s actuarial certificate, and KPMG had signed off its 2000 accounts.

City watchdog the Financial Services Authority on Monday brought in the SFO to find out how a company that was once a City favourite and worth as much as £1bn in December, is now teetering on the brink.

Links

SFO called to probe Independent

Liquidators appointed at Independent

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