Was Balva an accident waiting to happen, asks Frank Maher
Balva—a name which will cause trepidation among members of the 1,300 law firms—one in eight of the profession—who insured with them.
There is no suggestion that they are insolvent. But then equally, what reassurance is available? The unaudited fourth quarter accounts for 2012 will not, on their own (if at all), provide that assurance.
As the English section of Balva’s website states: “Activities of Balva have not stayed unnoticed by international professional organisations.” The Financial Conduct Authority register notes: “The Latvian regulator has prohibited this firm from writing any new business in the UK, effective 1 March 2013.” It is not clear when this note was added, but it first appears to have come to the attention of the press around 12 April 2013, a worrying time lapse.
A secure future?
Now, it is entirely possible that the measures taken by the Latvian authorities will secure Balva’s future, but it will require a degree of faith from policyholders to come to that conclusion. It is not just a question
