Lucky for some, unlucky for others

Covéa Insurance launched to a big fanfare today following the merger of MMA Insurance and Provident Insurance.

But what does this mean to the broker market?

While Covéa is a household name in its native France, the brand is not so well known in the UK.

By contrast, MMA and Provident have built up a loyal following of brokers in the UK regional markets.

So, while the name change strenghtens French mutual parent company Covéa’s global brand as it makes its first move into the UK market, it remains to be seen how this will affect brokers.

Covéa has made some bold moves at its UK subsidiaries, sacking the Swinton board at the end of last year in a dispute over the board’s performance-related share scheme payments, which were due to be made in the first quarter of this year.

But with James Reader installed as the new chief executive, there is every indication that the insurer is looking for stability.

Reader had been at Provident for nine years prior to his appointment, most recently serving as managing director, while most of his new-look team were with MMA or Provident before to the merger.

Its strong combined customer base of one million and revenues of more than £420m suggest it is in a good position to move forward and capitalise on where MMA and Provident have left off.

Late on Friday, Lemma Europe Insurance Company was put into provisional liquidation by the Supreme Court of Gibraltar, with Grant Thornton being appointed as the liquidator.

It is not the first time Gibraltar-based insurers have run into trouble, with Aldgate Insurance Company being wound-up in 2009, leaving customers with outstanding claims, and the news raises questions over the oversight of the Gibraltar regulator, the Financial Services Commission.