CBL Europe ordered to stop writing new business by Irish Central Bank
CBL Insurance Europe has been ordered by Ireland’s Central Bank to stop writing new business.
CBL Insurance Europe, a subsidiary of New Zealand-based CBL Corporation, will be able to continue operating existing policies, the central bank said today.
The insurer works through brokers and MGAs across the UK and Irish.
It has business including around 12,500 Irish household policies, Irish solicitors’ professional indemnity, UK travel insurance, construction related credit and financial surety and travel bonding.
Ireland’s Central Bank said: ”The Central Bank has today, 19 February 2018, issued a direction to CBLIE instructing it to cease writing business with immediate effect, until further notice.
“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).”
In the past three weeks, CBL Corporation has halted trading on two stock markets (Australia and New Zealand), had its credit rating downgraded, been ordered to increase its capital by two central reserve banks, had its chief operations officer leave after only two weeks in the job, pulled out of its biggest business (French construction insurance), and predicted a net loss of around NZ$75m-$85m.