Midas signs capacity deal with Gibraltar insurer
Midas Underwriting has signed a specialist motor capacity deal with Gibraltar-based insurer Mulsanne for business previously underwritten by failed Gibraltar insurer Enterprise.
The deal, which came into effect before Enterprise cancelled its policies on 26 October, applies to Midas’s performance and classic motor book.
Gibraltar-based Mulsanne is part of specialist motor broking and insurance group Complete Cover Group, previously known as A&A Group. Mulsanne is now headed by Complete Cover Group chief executive Tony Allen following a reshuffle in April this year.
Midas managing director Alan Hunter said: “We have resolved all the outstanding issues for our broking partners caused by Enterprise’s exit from this market, and now have a great offer for our existing and new clients looking for a home for their specialist motor customers.”
He added: “We are delighted to partner with Mulsanne, which offers competitive terms to brokers struggling in the ever-shrinking personal lines motor space.”
Mulsanne’s Allen said: “We are pleased to sign this partnership with Midas and look forward to a long and fruitful relationship. The withdrawal of market capacity by Enterprise and others has caused some difficulties, but we are happy to step in, through Midas, to provide brokers with a solid foundation for their clients.”
Enterprise collapsed on 22 July and was declared in default by the UK Financial Services Compensation Scheme on 28 July. The failed insurer and its directors now face a major regulatory probe after it emerged that the insurer has a £96m hole in its balance sheet.
Gibraltar’s regulator, the Financial Services Commission, believes it may have been “significantly and consistently misled” about Enterprise’s true financial position.