Lamp Insurance Company (Lamp) has submitted an application to the Supreme Court of Gibraltar to appoint an official receiver and place the firm into liquidation.
It is authorised and regulated by the Gibraltar Financial Services Commission (GFSC) and provides a range of products to policyholders in the UK, Europe and Asia.
The firm offered expat and local health insurance, and provided access to international treatment.
The news comes after the Gibraltar-based firm announced recently it had ceased to enter into new contracts of insurance or renew existing contracts.
The directors of the business and its UK parent group Lamp Services said they have been “exploring all options available to them to obtain additional finance to enable the company to meet its obligations under existing contracts and recommence issuing new contracts”.
The hearing date for the liquidation case will be on 31 May 2019.
No money in the bank
Lamp said: “The company’s cashflow projections show that it has insufficient liquid assets to enable it to pay its debts as they fall due and there is no reasonable prospect of obtaining sufficient liquid assets in sufficient time to enable it to do so.
“Consequently, the company is insolvent.
“The company’s insurance policies that have not expired remain in force. However, as the company is insolvent it is unable to make any claim payments.
“Policyholders should immediately consider acquiring alternative insurance protection.
“Where policyholders have purchased policies from the company through an insurance broker, solicitor or other intermediary, they should consult that person to seek advice as to what options are open to them.”
Regulator’s involvement
The GSFC said: “The official receiver will work to collect the assets of Lamp with the objective of making distributions to insurance creditors, including policyholders.
“It is likely that the amount recovered will not be sufficient to meet the amount due to policyholders in outstanding claims and unearned premiums.
“The GFSC will work closely with the official receiver and/or the designated insolvency practitioner, when appointed, to ensure that all policyholders are identified and communicated with directly and fairly.”
Potential sale
Lamp also said that it was still “actively considering all options, including a potential sale of the business”.
Any deal would be subject to the acquirer completing its due diligence, regulatory approval, and making an unconditional financial commitment prior to the liquidation hearing date.
