The “irregular” activity was revealed as the Jersey Mutual published its accounts in 2018.

In the document, the society revealed a deficit of nearly £900,000 and said it suspected that some amounts due to reinsurers over the years were “inappropriately withheld.”

The Police’s Financial Crime Unit officials subsequently opened an investigation, while the Jersey Financial Services Commission was also informed as regulator.

Last week, just over two years after the probe was launched, officials confirmed to Express that their investigation is still underway.

Jersey Mutual referenced the investigation in its latest set of accounts, which showed an overall loss of £333,745 – nearly £250,000 of which was the cost of regulatory compliance.

The report explained that, having received legal advice, the firm had taken “appropriate measures to seek the recovery of misappropriated sums and to mitigate its losses where possible”, though they noted that the overall “recoverability” of this money remained in doubt.

Despite the “potentially fraudulent activity”, the firm said its directors remained satisfied that:

  • the society’s members remain fully insured in line with the terms and conditions of their respective insurance plans;
  • Jersey Mutual’s reinsurance partners are “satisfied the matter has been resolved and continue to fully support the Society”;
  • the Society retains significant reserves backed by a portfolio of liquid investments;
  • and that, as a result, “the future strength of the Society and the interests of its members have not been compromised.”

The report added: “The Society has kept its regulator, the Jersey Financial Services Commission, and the Joint Financial Crimes Unit informed. All relevant parties will continue to be kept appraised of the situation.”

Pictured top: A letter written by Jersey Mutual President Sam Le Breton in 2018 to customers of the “suspected financial impropriety”.