A statement on the firm’s website said: “Policyholders should be aware that there is a possibility that there will not be sufficient available funds to meet the full amount of any claims.
“Policyholders are therefore advised to contact their broker, intermediary or agent in order to consider whether to seek alternative insurance cover immediately.”
On 1 August 2012 the Financial Services Commission of Gibraltar issued a direction that Lemma cease to be authorised to issue new contracts or renew existing contracts of insurance.
And on 28 September 2012 the Supreme Court of Gibraltar appointed Frederick David John White of Grant Thornton Gibraltar as provisional liquidator.
Lemma underwrote general insurance policies for 3XD clients – the insurance provider set up by the Gareth and Michael Riding and David Fulluck after they left Paymentshield in 2005.
3XD said it removed Lemma from its panel in August 2011 and has no enforceable clients with existing Lemma policies.
Clients who have already started claims but have yet to receive a payout should be covered under the Financial Services Compensation Scheme.