The scheme payment percentage for English & American Insurance Company Limited (“EAIC”) has been increased from 30 to 35 percent with effect from April 25th 2006.

The joint scheme administrators of EAIC, Tony McMahon and Tom Riddell, partners in the Restructuring Insurance Solutions practice of KPMG LLP (UK), stated that payments are expected to be made to creditors in the last week of June 2006.

The increase reflects the continued progress in collecting EAIC’s reinsurance assets, and greater certainty over EAIC’s liabilities, says the company.

The scheme administrators have also increased their best estimate of the ultimate scheme payment percentage to 46 percent. However, EAIC faces continuing uncertainty regarding its exposure to APH claims and to reinsurance bad debt and therefore estimates of the final scheme payment percentage cannot be given with any degree of certainty.

Tom Riddell, joint scheme administrator commented: “We and the creditors’ committee are pleased to announce this increase in the scheme payment percentage to 35 percent. This increase reflects good progress over the last year in collecting EAIC’s assets.”