MGA used by UK brokers folds after owner pulls funding

Underwriting agency Asset France has gone into liquidation after its ultimate parent, Ukranian insurer Lemma, decided to pull its funding.

Insurance Times understands the agency was used by brokers in the UK and internationally.

The agency wrote international property, marine and non-marine  business through a delegated authority agreement with Lemma. It wrote no local French business.

However, Asset France’s former general manager Michel Petitjean insists brokers will not be affected by the change.

Petitjean told Insurance Times: “The main shareholders didn’t want to put cash into the company any more so they decided to let it go.”

He added: “Brokers were aware before the closure so it is not a surprise for them. We have told them to deal directly with Lemma.  

“The brokers won’t be affected. They are already dealing directly with the Ukrainian people. All the business was passed the Lemma so there won’t be any repercussions for them.”

Petitjean said he expected the company to be wound up by the end of the year.

Asset France is a direct subsidiary of UK-based Asset Underwriting (Holdings), which is also the parent of London based MGA Asset Underwriting.

Asset Underwriting (Holdings) lists its ultimate parent as Lemma Victoria Limited, based in the Isle of Man.

According to the 2011 results of Asset Underwriting (Holdings), the most recent available, Asset France had negative capital position of £175,521 and made a loss of £16,488.

Asset Underwriting managing director managing director James Trusselle declined to comment on the closure of Asset France.

Lemma could not be reached for comment at the time of publication.