The investment company New Nordic Holding (New Nordic), who purchased the insurance company Qudos Insurance A/S (Qudos) in March 2017, today decided to place Qudos into solvent liquidation. This has happened after a comprehensive review of the insurance company’s situation.
Under the New Nordic’s ownership, the new management in Qudos initially succeeded in establishing a profitable business, but this was unfortunately not enough to counter the losses from the old business. The losses were found to be greater than expected and not of a transient nature.
Despite extensive restructuring, three capital injections and risk transfer to the German run-off expert Darag AG, it has ultimately not been possible to reverse the business and losses to an adequate degree.
Qudos has filed a claim against the former owner, the Canadian Insurer Echelon as a result of misinformation, lack of disclosure of essential information and other irregularities in the trade of Qudos that took place one and a half years ago. Legal action has also been instigated against the audit company PwC based on their insufficient review of the financial statements for 2016, which formed the basis for calculating the purchase price for Qudos.
“It is a deeply unhappy situation. We have been fighting for many months to correct and fix the situation and reduce the risk of European policyholders. But, unfortunately, I find that the amount of irregularities in connection with the acquisition proved too great to continue the normal operation,” says Qudos chairman Tage Reinert.
For further information and comments:
Tage Reinert: 40 79 70 99