Independent Lays Off 1044- Reinsurance Questions Raised

Independent Insurance provisional liquidators PricewaterhouseCoopers announced that at least 1044 employees of the collapsed insurer would be laid off, effective immediately.

The cuts mainly affect sales, marketing and new business underwriting. Only about half of the company’s 2000 employees are being retained – for the moment. 18 employees were also laid off at Independent’s Irish subsidiary.

It was also revealed that the company’s founder and former CEO, Michael Bright, entered into three reinsurance contracts with Ireco, a subsidiary of GE Capital, to provide reinsurance at rates that were extremely unfavorable to Independent, and may have hastened its collapse.