§ Mr. David ShawTo ask the Secretary of State for Trade and Industry if he will take steps to satisfy himself that the accounts of London United Investments plc in respect of the financial years ended in 1988 and 1989 showed a true and fair view of the profit and loss accounts and balance sheets and complied with the Companies Acts.
§ Mr. RedwoodThe accounts of London United Investments plc for 1987 and for 1988 were audited by Messrs. Peat, Marwick, McLintock who reported that the financial statements of the company gave a true and fair view of its affairs and had been properly prepared in accordance with the Companies Act 1985 and that the consolidated financial statements had been properly prepared in accordance with the provisions of the Companies Act 1985 applicable to insurance companies.966W The group's accounts for 1989 are not yet due. In another answer to my hon. Friend today I have set out the action taken by my Department.
§ Mr. David ShawTo ask the Secretary of State for Trade and Industry when his Department first sought an actuarial report by Tillinghast into the insurance liabilities of London United Investments plc or its subsidiary companies; what were the dates when the report or reports were received by his Department; what were the dates when his officials took action on each report; and what was the nature of the action taken in each case.
§ Mr. RedwoodThe Department required an actuarial report into Walbrook and its subsidiaries in January 1989. This report by Tillinghast was received in June 1989. The Department after consulting the Government Actuary's Department put various questions to LUI in August and September 1989. In October the DTI told LUI that it would require a further actuarial report covering all the United Kingdom insurance subsidiaries and that the Department needed to discuss a substantial reduction in the new business taken on by Walbrook. None of the other United Kingdom insurance companies in the group were authorised to take on new insurance business. The second actuarial report has not yet been received by LUI. The regulatory action to stop new business being taken by Walbrook, announced at 8.30 am on 26 March, was on the basis of Tillinghast's preliminary work which Schroders, the recently appointed merchant bank advisers to LUI reported to the Department on Saturday 24 March 1990.