Dead Happy - Case Update

Adam Stephens and Kevin Ley of Evelyn Partners, the joint administrators of Dead Happy, have filed their proposals describing what led to the insurance intermediary’s demise and their efforts to transfer customer policies while they work to complete a sale.

Dead Happy was founded in 2013 with the aim of providing tailored and flexible life insurance to its customers. It was an FCA regulated entity which offered two products: the Roller (a unique product offering, available directly to consumers via Dead Happy’s website) and the Leveller (a traditional term life insurance product, available via MoneySupermarket.com).

Until November 2022, Dead Happy was insured and reinsured by Covea and General Re Corporation, under which approximately 18,000 policies were written. Subsequently, it was insured and reinsured by Shepherds and Pac Re, writing a further approximately 7,000 policies.

In December 2023, Pac Re served a notice of termination of the reinsurance agreement on Shepherds, meaning that in March 2023 Dead Happy became unable to offer new policies. Media outlets have reported that this fallout was caused by a controversial social media marketing campaign featuring serial killer Harold Shipman with the tagline “Because you never know who your doctor might be”, which also resulted in a reprimand by the FCA and the Advertising Standards Authority (ASA).

Evelyn Partners were engaged to advise the company in mid April 2023 and to conduct a sale process from February 2024. This resulted in a purchaser being identified and heads of agreement being signed, although the purchaser’s identity has not yet been revealed. The intention leading up to the administration was to complete the sale promptly on the appointment of the joint administrators.

However, it was not possible to immediately complete the sale on appointment on 24 June due to the requirement to transfer all customers to their underlying insurers, Covea and Shepherds, as part of the step in process pursuant to the underlying scheme arrangements between the company and the insurers. This process was completed in July 2024 and work is now progressing to conclude the sale.

The company has no secured creditors. It is currently anticipated that ordinary and secondary preferential creditors will receive a dividend, while unsecured creditors are not expected to be paid.

The joint administrators’ proposals can be found HERE. They have been assisted by Hilco and Gunnercooke.