Liberty subsidiary to exit UK motor insurance business
Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance Group, is to make a managed exit from its niche UK motor insurance business following a strategic review.
The decision means that LSM’s motor book will close to new business from 1 November 2015 and will close to renewals from 1 January 2016.
LSM is contacting brokers to inform them of the decision and discuss arrangements for the book’s orderly run-off.
Alan Telford, chief underwriting officer, commercial, said: “This decision is the right one for LSM. Motor represents a small fraction of our overall business and, as a niche book, lacks synergy with our other classes of business and overall strategy going forward.
“We will only be in any market where we can give a stable and ongoing commitment to our customers and in these circumstances this is not possible. This makes the closure of our motor book the most appropriate course of action.
“The strength and growth we have across our portfolio means we can take a decision like this, confident that it improves our longer-term position and overall profitability.”
Telford said the firm will be working with its brokers to provide a “first-class service” on the remaining in-force policies.
Liberty entered the UK and motor market in 2010 focusing on niche lines such as coach fleets and small commercial fleets.
