CX Re goes into administration due to financial position

UK-based CX Reinsurance Company, formerly owned by CNA Financial Corporation, has entered administration, with Ernst & Young appointed as joint administrators.

CX Re was placed into run-off and sold to legacy vehicle Tawa UK in October 2002.

A statement by the reinsurance firm stated that the decision has been taken keeping in mind the interests of creditors and having considered all options to conclude the run-off. It said, "the directors resolved to place the Company in administration due to its financial position."

The administration of the company does not terminate or cancel a current policyholder’s contract of insurance (unless specifically stated in their policy). Valid claims should continue to be submitted through the normal route.

The joint administrators will issue formal notice of their appointment to all known policyholders in due course, and will issue their proposals to all known creditors within eight weeks of appointment, and report every six months thereafter.