The windscreen repair company lost a major supply contract with Aviva in December

Insurers moved quickly this week to fill the gap left by Auto Windscreens, which fell into administration after running out of cash.

Aviva has signed a deal with rival Autoglass, while Admiral – which signed a three-year deal with Auto Windscreens in December – has switched to National Windscreens.

An Admiral spokesman declined to comment on whether it would be interested in buying the UK windscreen repair and replacement company.

It has emerged that Auto Windscreens, which was sold by Aviva to German private equity firm Arques in 2008, lost a major supply contract with the insurer in December. It was put into the hands of administrator Deloitte on Monday after talks to recapitalise the company broke down. It also faced a winding-up petition from an unnamed creditor.

An Aviva spokesman said: “We want to reassure our brokers and customers that we have secured a deal with Autoglass to handle our customers’ needs. We are working with our new supplier to ensure our customers’ existing repairs are prioritised, and will make every effort in working with both suppliers to ensure a smooth handover of work from Auto Windscreens."

Chesterfield-based Auto Windscreens had an annual turnover of about £63m. As Insurance Times went to press, operations had been “temporarily suspended” as administrators assessed the situation. The future of 1,100 staff depended on sale talks.

Deloitte joint administrator Matt Cowlishaw said: “It is disappointing to see such a well-known business enter administration. The company worked hard to try to recapitalise the business, but this could not be achieved in the time available.”