On 7 December 2009 Novae Group plc announced its intention to transfer the renewal business of Novae Insurance Company Limited (“NICL”) to the Group's Lloyd's business, being Syndicate 2007, and to place NICL into run-off. It was also announced that, subject to regulatory and court approval, NICL’s in-force policies would be transferred into the Group’s Lloyd’s business. If completed, the restructuring would permit a substantial element of the surplus capital held by NICL either to be returned to shareholders or redeployed elsewhere in the Group.
Application has now been made to the High Court in England and the Royal Court in Jersey (together “the Courts”) for approval of proposed Schemes of transfer of insurance business under Part VII of the Financial Services and Markets Act 2000 (“FSMA”) and the Insurance Business (Jersey) Law 1996 (“IB(J)L”). The Schemes would transfer NICL’s in-force policies to Novae Corporate Underwriting Limited (“NCUL”), another Group company which is the sole member of Syndicate 2007 for the current year.
NICL will be sending notice of the proposed Schemes of transfer, directly to policyholders, brokers, coverholders and reinsurers. In addition, NICL will publish notice of the proposed Schemes of transfer in various newspapers in the UK, Jersey and in certain other EEA States in which NICL has policyholders, including the Financial Times (UK and European editions), The Times, The Daily Telegraph, Insurance Day and the Jersey Gazette.
The final Court hearings are expected to take place in September 2010, when the Courts will be asked to approve the relevant Scheme of transfer of insurance business to NCUL.
As is required by FSMA and IB(J)L, a report on the proposed Scheme of transfer and its effect on policyholders and other interested parties has been prepared by an Independent Expert, Mr Dewi James FIA of actuarial and management consultants James, Brennan & Associates.
Copies of the summary of the UK and Jersey Scheme documents and Independent Expert’s reports, the independent expert’s full report and other documents relevant to the proposed Schemes of transfer may be viewed below under documents or may be obtained free of charge by contacting NICL at the address below (FAO Stephen Heming) or by email to Part7@novae.com
Novae Group plc
FAO Stephen Heming
71 Fenchurch Street
London
EC3M 4HH
Tel: +44(0) 20 7903 7300
Fax: +44(0) 20 7903 7333
Email: Part7@novae.com