Insurance firm investigation
THE finances of Jersey Mutual Insurance Society are being investigated by the police after ‘potential fraudulent activity’ spanning a number of years came to light.
On Thursday, the organisation, which has served the Island for just under 150 years, sent a letter to all of its members informing them of the situation and confirmed that none of its clients’ policies had been affected.
And in Jersey Mutual’s 2018 financial statements, which have recently been published, it gave further details.
‘While the full impact of such activity has yet to be determined, it appears that some amounts to reinsurers [insurers of insurance companies] over a number of years may have been inappropriately withheld.
‘As a result, a provision has been included in these financial statements for the year ended 30 September 2018 amounting to £343,645 as due to reinsurers in this respect,’ the report said.
The letter to clients, written by Jersey Mutual’s president, Sam Le Breton, also moved to reassure its members that it remained in a strong and safe position and that it was business as usual.
‘We regret to advise you that we have recently become aware of potential fraudulent activity involving our finances that has occurred over a number of years. As a consequence we are currently undertaking detailed investigations as to the significance and impact of this activity.
‘We have informed our regulator, the Jersey Financial Services Commission, along with the States of Jersey Police – Joint Financial Crimes Unit and the matter is subject to their investigation. We continue to assist them fully.’
He added that its members remained fully insured in line with their respective policies, that their reinsurance partners were aware of the situation and had renewed their reinsurance treaties and that they had significant reserves backed by a number of saleable assets.
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