Gibraltar motor insurer recently signed a deal with the AA

Gibraltar-based motor specialist Collingwood Insurance Company is up for sale and has attracted a number of interested parties, Insurance Times understands.

Collingwood’s directors, who have signed confidentiality agreements, declined to comment.

The insurer tied up a deal with the AA at the end of last year to provide insurance for learner drivers at just over £3 a day. A market source said: “It’s a good business and has had a number of interested parties.”

Gibraltar motor insurers will be under increasing pressure to raise their capital requirements in line with Solvency II. Analysts say they can sell or ease capital burdens through reinsurance.

Transatlantic Re set up a carrier in Gibraltar offering co-insurance arrangements at the end of last year. The reinsurer was thought to have capacity of between £20m and £30m.

Lloyd’s reinsurers Faraday and Novae are also offering reinsurance arrangements for Gibraltar-based insurers.

Advantage is one motor insurer to take advantage of the arrangement, signing a quota-share reinsurance contract with Faraday and Novae that covers 40% of its business.