Trenwick may be sued over its failure to pay out on a claim for an injured horse.

The specialty insurance and reinsurance underwriting organisation arranged £100,000 worth of cover for five horses in France, which were due to be auctioned in the Deauville sales last August.

Then one young colt, insured for £40,000, injured itself in April by running into an object in a pasture.

French insurance company Gif wrote to Trenwick nearly a year ago on behalf of its client, saying the horse could not be sold. But Recatel, the agency that underwrote the complete value of the animal, has not paid out.

“We have written to Trenwick in London and France and their representatives,” said Gif director Joe Abouchalache, “but they haven't replied or given a reason for not paying out for the claim.”

He said that additional bloodstock insurance was taken, so that if the horse could not be presented at the sales because of an accidental external injury, 50% of the sum insured would be payable.

“Our client's solicitor has now written a letter to take them to court,” said Abouchalache.

Gif has also taken Trenwick to court over a disputed pay-out relating to three watches worth around £100,000. They were stolen from a Knightsbridge jewellery store last year.

Trenwick was unavailable for comment.