Major investor in troubled firm decides against potential investors

Rubicon Insurance Services was forced to reject offers from potential investors because its major shareholder Penta Capital felt they "were not good enough",

Insurance Times has learned. Rubicon, which went into administration last week, is believed to have sought investment at the end of last year when it emerged that the company did not have the cash to pay out on potential liabilities. It is understood that four offers of investment were made, but were turned down by Penta Capital.

A source close to Rubicon said: "It didn't need to happen. The investment offers were on the table, but the venture capitalists walked away and took the most valuable parts of the business with them."

Meanwhile, following Penta's acquisition of Rubicon Claims and Rubicon Heal, th administrator Kroll said 300 out of 560 jobs have been saved, 200 of which by Penta's acquisition.

A further 58 Maidstone-based staff have been made redundant. They are still waiting to be paid outstanding wages from Rubicon, a Rubicon spokesman said.

Kroll set up a deal for Direct Dialogue to buy Rubicon Insurance Service's Glasgow business salvaging 100 jobs. A further 14 jobs were saved after the administrator struck a deal with an alternative employer.

It is also understood Allianz Cornhill, AXA and Norwich Union had business outsourced to Rubicon. Allianz Cornhill said it had found an alternative service provider for its outbound household activity, while NU has brought the services in house.

AXA was unavailable for comment. Penta Capital could not be contacted at the time of going to press.

' Heath Lambert Insurance Services has picked up Argos' motor insurance book after Rubicon went into administration. Retail giant Argos was forced to cease trading in motor for one day last week while it looked for an alternative supplier.