OIC Run-Off Limited (OIC) and The London and Overseas Insurance Company Limited (L&O) are insurance companies incorporated in England. They are referred to as the ‘Companies’. Both Companies ceased writing new business in 1992 and have since been managing claims under UK Court approved Schemes of Arrangement.
The Early Final Dividend Offer is a proposal being made to all Eligible Scheme Creditors to receive a dividend in late 2025 or early 2026 in full and final settlement of their claims against the Companies, rather than waiting until the Scheme terminates around 2038. The Early Final Dividend Offer of 4.00% will increase the cumulative dividend to 80.00% providing certainty on the level of dividend paid as well as distribution significantly earlier than anticipated. If you do not accept the offer, the final dividend in 13 years' time will range from 0.00% to 5.74% (depending on tax payable), with the maximum only achieved if no tax is payable by the Companies at all.
You must take action if you wish to accept the offer.
Please follow the below steps to review your specific Early Final Dividend Offer Schedule and Agreement:
Creditors are strongly encouraged to complete the registration and acceptance process as early as possible.
The final deadline for Scheme Creditors to accept the Early Final Dividend Offer is no later than 5pm GMT on 14 November 2025
Early payment in late 2025 if responses are received by September 2025: As outlined in the diagram above, the Scheme Administrators may be able to issue a Notice of Effect and expedite payment in late 2025 if responses are received by September 2025. Early participation not only increases the likelihood of receiving payment sooner but also supports the timely processing of payments to all eligible creditors. If responses are not received until the deadline on 14 November 2025, then payments would be made in early 2026.
The Early Final Dividend Offer is a crucial part of a broader strategy by the Scheme Administrators to accelerate the overall wind down of the Companies and distribution of financial returns to Scheme Creditors.
If accepted, it will enable Scheme Creditors to receive their final dividend in 2025 or early 2026, which is significantly earlier and provides certainty of the level of dividend paid.
If the payment is made in 2038, the final amount paid will be uncertain as it is dependent on the tax situation at the time.
The Scheme Administrators have consulted key stakeholders in relation to the Early Final Dividend Offer, including the Creditors’ Committee, which has a duty to act in the interests of all Scheme Creditors. The Creditors’ Committee has undertaken an independent evaluation of the Offer and is unanimously supportive.