HK: Anglo Starlite Insurance Co. Ltd. in Provisional Liquidation
Anglo Starlite Insurance Co. Ltd. (the "Company") was placed into provisional liquidation on 8 May 2009 following an investigation by the Hong Kong Insurance Authority ("IA"). Peter Whalley and Jan Blaauw of PricewaterhouseCoopers were appointed as joint and several provisional liquidators.
As reported in its December 2008 regulatory returns, the Company’s capital fell below the statutory minimum margin of solvency and the Company was deemed to be unable to pay its debts under section 42 of the Insurance Companies Ordinance (Cap.41). The IA had been closely monitoring the Company’s solvency position and has required the Company to place a statutory deposit of HK$200 million in trust with the IA.
Based on market intelligence and individual complaints, the IA decided in April 2009 to investigate and verify the bank deposits and other assets reportedly held by the Company. It was discovered that certain bank deposits, amounting to HK$189 million, could not be substantiated. No satisfactory explanation was provided by the management of the Company.
Subsequently, the Commercial Crimes Bureau of the Hong Kong Police Force arrested and detained four of the Company's executives for questioning on allegations of forgery in reporting the Company’s financial status to IA.
Anglo Starlite Insurance Co. Ltd. is a Hong Kong incorporated insurer and engages primarily in providing coverage for taxis and goods-carrying vehicles. In terms of gross premiums written, the Company has 0.5% of the general insurance market and 4.9% of the motor vehicle business in Hong Kong.
Anglo Starlite Insurance Co. Ltd. ceased underwriting new or renewal policies effective 5 May 2009. Existing insurance policies issued by the Company remain in effect and the provisional liquidators will supervise the processing of all valid outstanding claims.