Loretta Minghella, FSCS chief executive, said: "This refund is good news for general insurance firms. They will benefit from a £40 million refund in January. It reflects the continuing recoveries we have secured from the estates of general insurance providers who have gone bust, as well as lower than expected claims volumes and compensation payments."
FSCS said it expected to pay the refund, which will benefit some 250 firms, in January 2008. Coming before the FSCS funding system changes in