Close Brothers to exit some broker relationships in retreat from personal lines

Close Brothers has announced that its premium finance business will exit some broker relationships over the next year as it starts to move away from personal lines.

In a statement today (9 July 2025), the provider said that it would reduce its “emphasis on personal lines insurance premium finance” to focus on commercial business.

“While personal lines has played an important role in our retail offering for many decades, the market environment has changed,” Close Brothers said.

“Rising costs to serve customers, broker consolidation and increasing operational complexity have impacted the long-term attractiveness of personal lines relative to other parts of our portfolio.

“Focusing on commercial lines will enable us to invest in growth and strengthen our position in the market, while streamlining operations and reducing complexity.”

Broker relationships

As a result of this decision, Close Brothers will withdraw from certain broker relationships over the next six to 12 months.

These brokers predominantly offer personal lines, without a material commercial lines focus, and represent around 10% of the provider’s broker network.

“We expect the premium finance loan book to decline by c.30% in the next three years,” it said.

“Over the same period, operating profit in this business is expected to reduce, reflecting both the lower loan balances and the investment required to enhance the proposition and optimise the cost base. We expect this to be offset gradually by targeted growth in commercial lines and cost savings from a more efficient operating model.”

To support this strategic repositioning, Close Brothers will optimise the cost base across the whole premium finance business through modernisation of the technology platforms, digitising more of the onboarding journey and streamlining its operating model.

Mike Morgan, group chief executive, said: “We are proactively shaping a more efficient and focused premium finance business by repositioning it towards commercial lines.

“Over time, we expect this business to operate with a smaller customer base, but with higher income per case and a reduced cost base, leading to improved profitability and returns. As outlined previously, my priorities remain to simplify the group, improve operational efficiency, and drive sustainable growth.

“This decision brings us closer to a more sharpened portfolio of core businesses positioned to deliver attractive risk adjusted returns.”