1.  History of EAIC and the EAUA Pools

EAIC was incorporated on 28 June 1929 to write insurance business and was initially a subsidiary of Bowring Services Limited (formerly C T Bowring & Co Limited).In July 1980, Bowring Services Limited, together with EAIC, was acquired by Marsh & McLennan Companies, Inc. In October 1983, The Marsh & McLennan Companies, Inc sold EAIC to English & American Group (which at the time of the acquisition was known as London & Gloucester Limited), which provided insurance-related services through its subsidiary companies. EAIC's ultimate holding company was therefore English & American Group, which has now been dissolved. English & American Insurance Holdings PLC (which has also now been dissolved), which was a subsidiary of English & American Group , was EAIC's intermediate holding company.

On 19 March 1993, a winding-up petition was presented by EAIC acting by its directors, and Anthony James McMahon and Roger Smith, partners in KPMG Peat Marwick, were appointed as provisional liquidators by order of the English High Court.

Both holding companies of EAIC gave guarantees to the ILU in relation to certain of EAIC's liabilities.  The appointment of provisional liquidators to EAIC and the presentation of a winding-up petition against EAIC had immediate financial consequences for such holding companies, as their assets were insufficient to meet their potential liabilities under the guarantees.  On 28 April 1993, partners in Price Waterhouse (now PricewaterhouseCoopers LLP) were appointed as joint administrators of both holding companies.

EAIC commenced underwriting in 1929 and since that date has been involved in a number of underwriting activities. EAIC's active underwriting operations immediately prior to November 1992 included its participation in the EAUA Pools. Pooling is a method of spreading risk whereby a combination of insurers, writing a specific class of insurance, agree to share the premiums and losses in agreed proportions.  Details of the type of business written by the Pools is set out below.

2.  Summary of business written by the Pools

		2.1.	The EAUA Pools
			The EAUA Pools comprise three pools of business: the Marine Pool, the Aviation Pool and the Non-Marine Pool.
			2.1.1. Marine Pool
			The Marine Pool, also known as the English and American Marine or "M" Group or Bowring Marine Group, underwrote from 1954 to 1992 primarily through London market brokers and via the Institute of London Underwriters, covering marine as well as some non-marine (long tail liability) business, split into various accounts, including those that covered cargo and excess of loss business, hull liability and energy business.
			2.1.2. Aviation Pool
			The Aviation Pool underwrote from 1980 to 1992 as three separate accounts, originally in the name of TAIG (Transglobe Aviation Insurance Group), which changed in 1983 to EAAG (English & American Aviation Group). Business was primarily written through London market brokers and via the Institute of London Underwriters. The accounts were:

				The Direct and Facultative account 1980 to 1992. The business written was in relation to major airlines and manufacturers, war, industrial aid, satellite, reinsurance and rotor wing.
				The General Aviation account. This was written from 1991 to 1992 and predominately written on a direct and facultative basis but there was a large element of reinsurance involvement covering light aircraft and rotor wing classes of business.
				The Excess of Loss account written 1984 to 1992. This covered reinsurance of direct insurers and retrocession business. Additional classes of war, satellite and personal accident were added in 1991 and 1992.
			2.1.3.	Non-Marine Pool
				The Non-Marine Pool underwrote from 1977 to 1992 (including direct and reinsurance business from 1977 to 1985 and reinsurance business only from 1986 to 1992) originally in the name of C T Bowring Underwriting Services and Aurora Underwriters Limited through London market brokers. The business was split into the following classes:
				General treaty reinsurance account effective for all years, mostly comprising property and casualty business;
				Retrocession treaty (LMX and Non LMX) account effective all years, property and casualty business from 1977 to 1984 and property business only from 1985 onwards;
				Retrocession treaty account;
				US binders, from 1977 to 1986;
				International agencies written 1985 to 1987, which was a property based account;
				UK Home Foreign account comprising property and some casualty, written from 1981 to 1987; and
				Special risks, written mainly from 1985 to 1992.

    

		2.2.	The TAUS Pool
			This TAUS Pool was an aviation account underwritten in Guernsey from 1990 to 1992, each year comprising a mix of direct, facultative and reinsurance business in respect of various classes of aviation business.
		2.3.	The Transglobe Re Pool
			The 'Transglobe Re Pool', the underwriting years of account for this pool were 1982 and 1983 and the business included a mix of facultative, proportional reinsurance and excess of loss. In general, all of the accounts provided reinsurance protection to direct aviation underwriters of mainly airline, airports and aviation products manufacturers.
		2.4.	The E&A Re Pool
			E&A Re was an underwriting agency established by the English & American Group in Brussels in June 1981.  Its objective was to write a mainly facultative reinsurance account in Continental Europe.  The account consisted essentially of London Market broker produced business with a strong orientation towards the USA.  A proportional reinsurance book was also written in parallel to the facultative account.  The overall book consisted mainly of property risks.  The account was placed into run-off on 1 August 1984.

3.  Non-Pool - English and American Insurance Company ("EAIC"), and City International Insurance Company Limited

		3.1.	EAIC
			EAIC commenced underwriting in 1929 and since that date has been involved in a number of underwriting activities. EAIC’s active underwriting operations immediately prior to November 1992 included its participation in the English & American Underwriting Agency Limited (“EAUA”) Pools and the Transglobe Underwriting Management (Guernsey) Limited (“Transglobe Guernsey”) Pool. EAIC also had a number of discontinued or run-off operations prior to November 1992 now commonly referred to as “non pool”. These included:
			the London Market Non-Marine account, which comprised London Market non-marine and some aviation business written principally between 1952 and 1976.
			The ANMC, BLAN, BPI and BEAF fronting facility arrangements written between 1977 and 1986.
			The Bowring International Reinsurance Group (BIRG) account which wrote London Market Excess of Loss (“LMX”) reinsurance between 1967 and 1983.
			An International account which encompassed various overseas agency operations. These were discontinued in 1985.
			A Home account which consisted of various agencies in the UK. This business was also discontinued in 1985.
			The general insurance business of Providence Capitol Life Assurance Company Limited, formerly Slater Walker Life Assurance Company Limited, which was transferred to EAIC in 1988 and consisted of marine and non-marine business written in the name of Slater Walker between 1972 and 1976.

3.2.

City International Insurance Company Limited

City International Insurance Company Limited is also including its non-Pool Business within the Scheme, namely all Liabilities arising by it (or by its predecessor in title) or in connection with any reinsurance or contract of insurance or reinsurance underwritten including, without limitation, in respect of its own non-marine reinsurance business during the years 1985 to 1992. Classes of business underwritten included facultative property, facultative liability, miscellaneous facultative business, proportional reinsurance property, proportional PA/KR, proportional property, bloodstock, non-proportional liability and non-proportional property. Since April 1996, the run off of this account has been managed by Capita Commercial Insurance Services Limited (formerly Claims Management Group Limited). This non-pools business amounts to less than 4 percent of this company's overall underwriting liabilities.

3.3.

The Insurance Corporation of Singapore (U.K.) Limited

Provision was made in the Existing ICS Scheme for Oberon Pool Claims to be submitted to St Paul Re, and paid by that company. Those provisions are not amended by the Scheme and ICS has no remaining liability or obligation whatsoever to make payment in respect of those claims.