Troubled medical insurer United Medical Protection (UMP) has become the first company in Australian corporate history to be given a clean bill of health and released from provisional liquidation. Most companies that go into provisional liquidation get flogged off or broken up. The political consequences of liquidating UMP and getting doctors really annoyed helped save the insurer in the first place. 

Given the thumbs-up by the Supreme Court of NSW yesterday, UMP is now underpinned by a highly qualified management team and heavyweight directors. The court found the value of the group’s net assets increased by $80.2 million over the last financial year to a net asset position of $78.9 million.  

The provisional liquidator, David Lombe of Deloitte Touche Tohmatsu, says the recovery job wasn’t easy. But after an intensive 18-month restructure, he says the group is now in a “sound financial position”.

“UMP is now underpinned by a new structure and a strong management team with a high degree of medical and business experience who are able to meet legal and fiscal responsibilities and ensure members’ interests are protected now and in the future,” he said.

Included in the new board of Australian Medical Insurance Limited, UMP’s wholly owned insurer, are former ING CEO Rod Atfield and former Federal Minister for Finance John Fahey. Terry Paradine, former Chairman of Marsh Asia-Pacific, has also been nominated for the board.  

Mr Lombe says the group is well on the track to meet the Australian Prudential Regulation Authority's 2008 transitional deadline for minimum capital requirements applying to all medical indemnity insurers.