Mr Justice Evans-Lombe has sanctioned two new solvent schemes of arrangement for La Mutuelle du Mans Assurance and Scottish Eagle Insurance.
These are the first solvent schemes of arrangement with a material element of direct policyholders to be approved since the British Aviation Insurance Company (BAIC) ruling in July 2005.
In both the MMA and Scottish Eagle solvent schemes of arrangement Mr Justice Evans-Lombe deemed it appropriate to have one class of creditor for the purpose of voting. No distinction was drawn between incurred but not reported claims and other claims.
In total, there have now been 21 successful schemes of arrangement for solvent insurance companies since July 2005. PricewaterhouseCoopers has acted as adviser on all of these solvent schemes.
Dan Schwarzmann, partner at PWC, said: "There is no doubt that lessons have been learnt by the industry from BAIC.
"However, the sanctioning of the MMA and Scottish Eagle solvent schemes of arrangement addresses the two main issues for schemes of arrangement for solvent insurance companies raised by the BAIC judgment - namely those relating to class issues and importantly, whether direct policyholders can be bound by a solvent scheme of arrangement.
"As Mr Justice Evans-Lombe commented when sanctioning these solvent schemes of arrangement, each case will be fact-specific."
