Enterprise parent provides update on MGA, ratings reinstatement

Enterprise Holdings, the parent company of failed insurer Enterprise has said it is not going to get a rating for its bonds until its managing general agency (MGA) plans are fully in place.

Credit agency Creditreform suspended its ratings on Enterprise Holdings’ two bonds last month following the failure of the subsidiary.

The company said it was working intensively to set up the final structure for Andeva Underwriting Agency Limited to become the group’s MGA.

But the insurer said this process would last a few weeks until completion.

“Therefore during the meeting and discussions with Creditreform both parties decided to do the follow-up rating when the new structure is in place and the MGA is in operations,” chief executive Andrew Flowers said.

“We currently focus all our efforts to finalize the MGA route and to start writing insurance schemes via the new structure which should generate insurance premium volumes to similar levels historically enjoyed by Enterprise Insurance Company but without any cost of capital and a significantly reduced overhead.“