CBL told to cease writing European business
The Central Bank of Ireland has issued a direction to New Zealand’s insurer CBL to cease writing business with immediate effect through its European arm CBL Insurance Europe (CBLIE), according to a Feb. 19 press release.
CBL is a non-life insurer that specializes in underwriting building- and construction-related credit and financial surety insurance, bonding and reinsurance.
Its parent company CBL Corporation Limited (CCL) has experienced significant deterioration in its operating performance in fiscal year 2017, due primarily to a NZD100 million ($73.6 million) reserve charge to strengthen reserves for CBL’s long-tail French construction insurance business, according to AM Best. Management has proposed raising a substantial amount of capital.
Its European arm CBLIE is authorised and regulated by the Central Bank of Ireland. The principal operating activity of CBLIE is to provide a range of non-life insurance products in Ireland and in a number of countries within the European Union on a freedom of services basis.
CBLIE specialises in construction related credit and financial surety insurance, professional indemnity insurance, property insurance, and travel bonding. These products are distributed through channels including managing general agents (MGAs) and insurance brokers.
CBLIE continues to operate and existing policies continue to remain in force.
The Central Bank has required CBLIE to write to all appointed insurance brokers and distribution partners to inform them of the direction. The Central Bank has also requested that all appointed brokers and distribution partners, with which CBLIE is connected, inform policyholders. Any existing CBLIE policyholders who have concerns about their policy should contact the firm directly, or their broker (if the policy was bought through a broker).
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