Restructuring partners David Costley-Wood and Michael Walker at KPMG have been appointed as joint administrators by the company’s directors and will work to wind-up FirstCity Insurance.
Walker said: “We are currently assessing the position and are looking to put in place arrangements for the run-off of the inactive business as soon as possible.”
The insurance broker and risk management advisor side of the business, FirstCity Partnership, was last month sold to rival broker Arthur J Gallagher.
The company bought all of the group’s insurance and reinsurance business and now manages FirstCity Partnership’s client money arrangements and existing relationships.
The FirstCity Partnership business will not be affected by the administration of FirstCity Insurance, the holding company, which has been inactive for some time.
Arthur J Gallagher, which employs over 600 people globally, is a subsidiary of Chicago based Arthur J Gallagher & Co.
Its purchase of FirstCity Partnership was rubber-stamped by the Financial Services Authority earlier this month, allowing it to absorb the new portfolios.