Staveley’s directors were also paid dividends amounting to £600,000
Defunct Lloyd’s coverholder Staveley Head, which went into administration yesterday with the loss of 61 jobs, recently paid a £2m dividend to its holding company Gelert Group, Companies House records show.
The filing also said there had been ”a reorganisation of share capital, including the cancellation of shares and the issue of new shares”.
The change resulted in Staveley Head becoming a wholly owned subsidiary of Gelert Group Ltd.
“A dividend of £2,000,000 has subsequently been paid to the new parent company.,” the filing added.
Staveley and Gelert have the same registered address and both Staveley’s directors, Ashley Leonard Peters, and Martin Keith Tyler, are also listed as directors at Gelert Group.
Gelert is described as an insurance agent.
The filing showed that dividends of £600,000 were paid to the directors also.
A spokesperson for the administrator told Insurance Times that only Staveley Head was in administration.
Meanwhile, MP Mark Tami, who’s constituency the company is in raised concerns about the payments.
In statement sent to Insurance Times, he said: “The suggestion that dividends amounting to significant sums may have been paid by Staveley Head shortly prior to entering administration is concerning.
”I have contacted the company and will be asking further questions about these payments. Whenever a company enters administration it is my view that shareholders have a clear moral responsibility to ensure wherever humanly possible that their staff are not left high and dry.”
Unrated capacity
Meanwhile, Chief executive of MGA Ripe Paul Williams told Insurance Times that Staveley’s was ”reflective of the times that the demise of more and more unrated capacity is placing a strain on brokers and intermediaries who have chased the cheaper rates often provided by these sorts of insurers.
”In the long run, it will be brokers that understand the importance of good data and analytics to drive their risk selection and pricing that will win in the long term. Insurers will increasingly shy away from distributors that do not tick these boxes.
Staveley fell into trouble amid the liquidity issues faced by Danish unrated insurer Gefion, which provided most of the broker’s business.
No comments yet