Trouble buying reinsurance blamed by 4% bit player

Amlin is to cease writing credit insurance due to difficulty buying reinsurance and wants credit insurers Atradius, Coface and Euler Hermes to cover its clients, The FT claims.

The FT quotes Charles Phillips, Amlin’s chief executive, as saying: “Getting reinsurance for credit insurance is becoming more difficult. This is not a big part of our business, and taking a long-term view we think it will be extremely difficult to make a return,” he said.

Amlin has just 4% of the UK credit insurance market. The FT reports that the company is in consultation about what will happen to their credit insurance team, thought to comprise about 30 people.

The Telegraph says Amlin is setting up a new privately backed – “Names” – Lloyd’s syndicate to take advantage of rising premiums. Names were the original source of funding for Lloyd’s but have increasingly been replaced by corporate cash.

The Telegraph also speculates that Amlin is to buy Chaucer.