The move will determine whether MCE should continue to trade, be sold or be wound down in an orderly way
Motorcycle broker MCE Insurance Limited has been placed into administration.
A statement sent to Insurance Times today (19 July 2023) said the broker entered administration earlier this week (17 July 2023).
It said the move would determine whether the business should continue to trade, be sold or be wound down in an orderly way.
Sabre Insurance Group, which underwrites the business, said it will “closely monitor the situation while the administrator reviews options”.
“Sabre will continue to work with MCE and to seek the best possible outcome for MCE’s customers,” the insurer added.
Profitability
Sabre signed a long-term agreement with MCE in November 2021 to become the exclusive underwriter of the broker’s motorcycle policies.
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However, the insurer said it ”does not expect any material impact on overall volumes or profitability” following MCE going into administration.
Sabre’s Q1 2023 results, which were published earlier this year (26 May 2023), showed gross written premium (GWP) from its motorcycle business fell from £12m in the first quarter of 2022 to £6.3m in the first four months of this year.
However, the group said the current run‐rate performance of the motorcycle business was in line with expectations.
After the Q1 2023 results were published, Geoff Carter, chief executive of Sabre, said: “The actions we took last year and this year to increase the profitability of the motorcycle businesses should generate a positive contribution to profit.
“If these positive market pricing trends and run‐rates continue through the rest of the year, we anticipate a strong bounce‐back in earnings compared to 2022.”
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