Following creditors' meetings at the end of April 2010, the English High Court sanctioned the English and American Underwriting (EAUA) pools solvent scheme on 6 October 2010. By the time of the court hearing, the scheme, which consists of sixteen reinsurers, thirteen solvent and three insolvent, the scheme was unopposed. At the sanction hearing details were given of the vote counting mechanisms and the judge concluded that the processes were thorough.
It is significant and interesting that the scheme was sanctioned notwithstanding that it covered some residual compulsory insurance. Normally it is not possible to close such business by means of a solvent scheme. In this case replacement insurance was put in place and on that basis the court allowed the scheme to proceed.