Liquidator appointed for Gibraltar-based insurer
The Supreme Court in Gibraltar has appointed Grant Thornton as provisional liquidators for Lemma Europe Insurance Company, the Financial Services Compensation Scheme has confirmed.
FSCS said it is in talks with Grant Thornton and has reported that the company’s payments to policyholders have been suspended while the liquidators investigate the firm’s assets and liabilities.
Because it was authorised by the Financial Services Authority, some claims against the company might be protected by the FSCS. The Scheme expects these to mostly be UK risks of individuals or small business.
Lemma provides a range of general and liability insurance products, including professional indemnity insurance, which a specialism in PI cover for law firms. Until last year, it was recognised as a qualifying insurer by the Solicitors Regulation Authority.
A statement from the FSCS said: “We appreciate that you may be concerned about your claim and any payment that might be due from Lemma, but at this stage we are unfortunately not in a position to discuss individual claims.”
According to the FSCS, Grant Thornton will soon contact all policyholders to discuss their options.
Yesterday (2 October), The FSCS said it had paid out more than £130,000 in claims against the failed Tamworth Credit Union.