Fifteen insurance and reinsurance companies proposed a solvent scheme of arrangement, called the WFUM Pools Scheme, to terminate the run-off of these insurance policies. The 15 companies were seeking sanction of the WFUM Pools Scheme from the High Court of Justice in London (UK). The proposed scheme was one of the largest and most complex schemes of arrangement proposed to date.
NERA Senior Vice President Lucy P. Allen served as an expert witness on behalf of the insurance companies. She presented evidence to the High Court at the creditors' class definition stage as well as the sanction stage. Her evidence covered several topics including the estimation methodology for claims related to toxic torts, and large corporations’ risk management strategies.
The WFUM Pools Scheme was sanctioned by the High Court relying in part on Ms. Allen's evidence.