UK insurance firm East West goes into administration

The UK High Court has appointed Ernst & Young's Simon Edel and Richard Barker as joint administrators of East West Insurance Company (EWIC), which was placed into administration on October 12, 2020.

Established in 1964, EWIC operated principally in the London Market underwriting a mixed portfolio of risks. The company ceased writing new insurance policies in 1997 and acquired a portfolio of buildings guarantee policies in 2018.

According to EY, the company had received a number of unexpected high value new claims in the recent months that ultimately affected its solvency position.

Edel said: “The Company had been adversely affected by an unprecedented set of claims that ultimately proved to be too extensive to remain solvent. After detailed financial analysis and full consideration of alternative options, the Company was placed into administration, rather than liquidation, in the interest of creditors.”