California’s Conservation and Liquidation Office (CLO) will distribute $530 million to policyholders and claimants from the liquidated estate of the Mission Insurance Companies, California Insurance Commissioner John Garamendi announced. The latest amount brings the total amount distributed since 2003 to $750 million, the largest distribution ever made to claimants of a property and casualty insolvency.
Under the plan, Mission and Mission National policyholders will receive 100 percent of their approved claims; Mission National Insurance Co. general creditors with approved claims will receive 100 percent of their claims; and the Mission Insurance Co. general creditors with approved claims will immediately receive 30 percent of their claims, with more distributions likely at a later date.
Throughout the early 1980s, the Mission Insurance Companies were one of the country’s top workers’ compensation insurers, according to the commissioner’s office. However, competition spurred declines in rates, leading to financial problems for the Mission companies.
At the time of failure in 1987, the Mission Companies represented the largest P/C insurance insolvency in the country. Since liquidation, the companies have collected in excess of $1.22 billion in legal and reinsurance recoveries, and processed more than 165,000 claims that were filed with the liquidated estates. They have already distributed in excess of $900 million, and coupled with the current $530 million, will have paid out in excess of $1.4 billion.
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