CX Reinsurance Company Limited (in Administration) – Direct Scheme of Arrangement

CX Reinsurance Company Limited (in Administration) (‘the Company’ or ‘CX Re’) – Direct Scheme of Arrangement (the 'Direct Scheme')

The Company proposes to enter into a Scheme of Arrangement (the 'Direct Scheme') pursuant to Part 26 of the Companies Act 2006 with its creditors with claims arising in respect of contracts of direct insurance (collectively the 'Direct Scheme Creditors'). A contract of direct insurance means, for these purposes, the cover provided by an insurer to a non-insurer policyholder, as opposed to reinsurance cover provided by an insurer to cover insurance risks written by another insurer.

The Company sent a letter to all known Direct Scheme Creditors for which it had contact details on 4 September 2024, to inform them of the Administrators’ proposal to seek the court’s approval of a single class meeting for voting on the Direct Scheme (the 'Practice Statement Letter' or 'PSL'). A copy of the PSL is available to download below.

Following the issue of the PSL, the Company applied to the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies Court (Chancery Division) for permission to convene a meeting of Direct Scheme Creditors (the "Direct Scheme Meeting") to consider a proposed scheme of arrangement pursuant to Part 26 of the Companies Act 2006 (the "Direct Scheme"). The hearing relating to this application (the "Convening Hearing") took place on 3 October 2024 and the Court subsequently granted the Company's request to convene the Direct Scheme Meeting, by way of an order dated 4 October 2024, a copy of which is available below.

A copy of the Direct Scheme and Notice of the Direct Scheme Meeting has been sent to all known Direct Scheme Creditors for which the Company has contact details. Copies are also available to download below. Should anyone require a hard copy of any of the documents, they should contact the Administrators via email at CXReClaims@uk.ey.com.

The Direct Scheme Meeting will be held remotely, hosted by the Joint Administrators through the web-based platform web.lumiconnect.com. Direct Scheme Creditors may attend by logging in using the URL and unique login credential (“Access Details”) provided to them by the Company with the Direct Scheme. Direct Scheme Creditors who have not received Access Details should contact the Company using the contact details via email at CXReClaims@uk.ey.com.

The Direct Scheme Meeting will commence at 5.00 p.m. (London time) on 12 December 2024 or as soon as reasonably practicable thereafter.

Direct Scheme Creditors may attend and vote at the Direct Scheme Meeting in person (or, if by corporation, by a duly authorised representative), or may appoint another person as their proxy to attend and vote in their place.

Each Direct Scheme Creditor wishing to attend and/or vote at the Direct Scheme Meeting (whether in person or by proxy) is requested to complete and return a Voting and Proxy Form to be received by the Company by no later than 5.00 p.m. (London time) on 11 December 2024.

The voting and proxy form for use at the Direct Scheme Meeting (the “Voting and Proxy Form”) is available to view and download below and includes instructions as to how it should be completed and submitted to the Company.

If a Direct Scheme Creditor intends to attend the Direct Scheme Meeting, it should confirm the names and contact details of the attendee(s) on the Voting and Proxy Form. An attendee who is not notified to the Company in advance of the Direct Scheme Meeting may not be permitted entry. The online platform will be open from 4.45 p.m. (London time).

The High Court of Justice has appointed Richard Barker, or failing him, Simon Edel of EY (the joint administrators of the Company) to act as chairman of the Direct Scheme Meeting (the “Chairman”) and has directed the Chairman to report the result of such meeting to the Court. The Chairman will address Direct Scheme Creditors generally on the Direct Scheme and on the issues relevant to voting at the commencement of Direct Scheme Meeting.

If approved by the requisite majorities of the Direct Scheme Creditors at the Direct Scheme Meeting, the Direct Scheme will be subject to the subsequent approval of the Court.

Any person who believes that they may be affected by the Direct Scheme is invited to read the Direct Scheme, consider its contents carefully and take legal advice if they consider it appropriate to do so. Should anyone require a hard copy of any of the documents below, they should contact the Administrators via email at CXReClaims@uk.ey.com.

Should you have any questions in relation to the Direct Scheme please do not hesitate to contact the Company at CXReClaims@uk.ey.com.

Should you require any information regarding the Administration of the Company, please visit the CX Re Administration Website

CX Re is authorised by the Prudential Regulation Authority as a non-life insurance company and regulated by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) (together “Regulators”). It was established in December 1972 as Continental Casualty Company Limited and changed to CX Re in October 2002.

Richard Barker and Simon Edel are licensed in the United Kingdom to act as insolvency practitioners by The Insolvency Practitioners Association. As Insolvency Practitioners, they are bound by the Insolvency Code of Ethics in carrying out all professional work relating to the appointment.

The affairs, business and property of CX Reinsurance Company Limited (In Administration) (“the Company” or “CX Re”) are being managed by the Joint Administrators, Richard Barker and Simon Edel, who act as agents of the Company only and without personal liability.

The Joint Administrators may act as data controllers of personal data as defined by the UK General Data Protection Regulation (as incorporated in the Data Protection Act 2018), depending upon the specific processing activities undertaken. Ernst & Young LLP and/or the Company may act as a data processor on the instructions of the Joint Administrators. Personal data will be kept secure and processed only for matters relating to the Joint Administrator’s appointment. The Office Holder Data Privacy Notice can be found at www.ey.com/uk/officeholderprivacy.