A London-based insurance firm with over 19,000 UK policyholders has become the first insurer to enter administration since 2009.
Millburn Insurance Company Limited voluntarily ceased to write new business following a review of the business by its regulator the Prudential Regulation Authority (PRA) in August and September.
Neil Mather and Christopher Morris of Begbies Traynor were appointed as joint administrators on 9 December after the company was placed into administration by the High Court.
Millburn is the first insurer to fail since the Bank of England took over as the regulator of insurance companies via the PRA in April this year.
Neil Mather, partner at Begbies Traynor, said: “Over the coming weeks we will be working hard to assess the company’s financial position and agree the best course of action.
“It is a highly unusual event for an insurance company to find itself in administration; this is the first we have seen for almost five years.
“Begbies Traynor has been appointed due its experience in this specialist area, which includes the last UK regulated insurance company to go into administration, The Exchange Insurance Company in 2009.”
There have been no redundancies at the firm as Millburn predominantly sold via third party cover holders and brokers, and had no direct staff.
Administrators have confirmed that insurance policies issued by the company currently remain valid, but is unable to pay out on any claim whilst its finances are under assessment.