On June 27, 2019, Stronghold Insurance Company Limited was placed in Administration in the UK, and Dan Schwarzmann and Nigel Rackham of PwC were appointed as Joint Administrators. After the proposed solvent scheme failed to gain approval by creditors, the directors of Stronghold determined that the company was likely insolvent and therefore acted to place Stronghold in administration.
Stronghold has been in run-off since 1985. Since 2016, it has failed to meet the new Solvency II capital requirements. The company stated its belief in a letter to creditors last summer that a scheme of arrangement is in the best interests of both Stronghold and its policyholders. A solvent scheme of arrangement was proposed last year, but the creditors’ meeting this past February was adjourned without result due to creditor opposition. For more information, see Stronghold’s website, PwC’s website, and KCIC's previous commentary.
KCIC will continue to monitor developments relating to Stronghold. Please let us know if you have any questions regarding this notice.
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