CBL Insurance Europe DAC
CBL Insurance Europe DAC (“CBLIE”) is an insurance firm which was regulated by the Central Bank of Ireland (“Central Bank”) up to the date of liquidation of the Company on 12 March 2020. The principal operating activity of CBLIE was to provide a range of non-life insurance products in Ireland and in a number of countries within the European Union on a freedom of services basis. CBLIE specialised in construction related credit and financial surety insurance, professional indemnity insurance, property insurance, and travel bonding. These products were distributed through channels including Managing General Agents (MGAs) and insurance brokers.
By order of the High Court of Ireland on 12 March 2020, CBLIE was placed into Liquidation. Kieran Wallace and Cormac O’Connor of KPMG were appointed joint Liquidators.
As a result of the liquidation, the Central Bank of Ireland had withdrawn CBLIE’s authorisation under the 2015 EU (Insurance and Reinsurance) Regulations 2015 to operate as an insurance company, save to the extent necessary for the effective winding up of CBLIE. The remaining authorisation of CBLIE permits the Joint Liquidators to pursue the activities of an insurance undertaking only insofar as those activities are necessary or appropriate to achieve the objectives of the liquidation. The Joint Liquidators are not otherwise authorised to carry on insurance activities and are not authorised to enter into new contracts or renew existing contracts.
Policyholders are advised to take immediate steps to find alternative cover.
ORDER OF EVENTS
On 19th February 2018, the Central Bank of Ireland (the “Central Bank”) issued a direction to CBL Insurance Europe DAC (under Administration) (“CBLIE”) instructing it to cease writing business with immediate effect.
On 26 February 2018, the Central Bank made an application to the High Court to have an Administrator appointed to CBLIE. Kieran Wallace of KPMG was appointed as Administrator.
On 19 February 2019, the Central Bank withdrew CBLIE’s authorisation as granted under the European Union (Insurance and Reinsurance) Regulations 2015, save to the extent necessary and/ or appropriate for the administrator to carry on the activities of the insurance undertaking. These activities are carried on with the consent and under the supervision of the Central Bank.
On 9 December 2019, on foot of an update by the Administrator which indicated a deteriorating financial position, the Central Bank directed CBLIE to cease making claims payments with immediate effect.
On foot of detailed and extensive financial and commercial information provided by the Administrator, on 20 February 2020, the Central Bank lodged a petition with the Irish High Court seeking the winding-up of CBLIE. On 12 March 2020, an order was granted for the winding up of CBLIE. The Central Bank took this action in the interest of protecting all policyholders.
The Joint Liquidators have submitted a Directions Application to the Irish Courts which will provide clarity on all relevant matters which have arisen in the winding up of the Company. The initial hearing took place the 27th November 2020 and the full hearing the 3rd and 4th of March 2021. The Judge reserved judgement following the hearing and we await his judgement in the matter. Once the High Court gives its directions, the Joint Liquidators will be able to commence admitting eligible claims in the liquidation and confirm where in the liquidation those claims rank.
All information on this website is translated to French and Italian for ease of reference. Should any conflict arise between the English language information and any translation thereof, the English language version shall be controlling.
It is hereby expressly declared that Mr. Kieran Wallace and Mr. Cormac O’Connor, Joint Liquidators for CBLIE, act solely as agents for and on behalf of the Company. As a consequence, the Liquidators, their firm, partners, employees, agents, advisers or representatives shall not incur any personal liability whatsoever in connection with any information included on this website.