Troubled Carillion had a high-value contract with a major UK insurer
Direct Line Group is understood to be caught up in the fall out from Carillion’s liquidation.
In 2015, Carillion was awarded contracts worth over £350m for “facilities management contracts” and “contract extensions” for Direct Line Group, Verizon and Virgin Media.
It is believed that the contract with Direct Line Group is ongoing. Carillion boasts Direct Line Group as a client on pages relating to its ’customer experience management’ and ’facilities management’ on its website.
When contacted by Insurance Times, Direct Line Group said it was ”too early for us to determine the affect of Carillion’s administration” and would not expand further.
Construction giant Carillion went into liquidation on 15 January.
It employs 43,000 people across the UK, Canada and the Middle East and used to have annual revenues of £5bn.
In addition to construction services, it also offers integrated support services, public private partnership projects - investing activities in a range of projects including defence, health, education, transport, energy services and “other Government accommodation”.
Trade credit insurers, including Allianz-owned Euler Hermes, Tokio Marine HCC and Nexus, reportedly pulled out of offering new cover to suppliers of Carillion from last Friday.