Administrator advertises for buyer as insurance services provider runs out of cash

Third party administrator Rubicon Insurance Solutions (RISL) is searching for a buyer to save 400 jobs after it went into administration on Monday.

The administration is being handled by Kroll which advertised in Monday's national press for a buyer.

Rubicon, which offers white label end-to-end administration capabilities to insurers, has a turnover of £12m.

Insurer Zenith has declared an interest in buying the company's Maidstone office and merging it with its UK operations.

Andy Haynes, chief executive of Zenith parent Guardian Holdings, said: "We have worked closely with the [Rubicon] team for a number of years. We are keen to retain its services going forward.

"We are in extended negotiation with the administrator from Kroll to acquire the Maidstone operation which will allow us to protect many of the jobs at stake at RISL, and to expand Zenith Services, our policy and claims administration company."

Towergate and Hastings Direct were touted as potential buyers last year after a series of shareholders left the company. Former Rubicon joint chief executive Max Carruthers joined Towergate as a director in April last year. His co-chief executive, Bradley Brandon-Cross, resigned last summer, while chairman Garth Bearman left in September.

In a statement, Rubicon Corporation said Kroll had negotiated deals for venture capitalist Penta Capital to acquire Rubicon Claims and Rubicon Health. The new group would continue to focus on claims handling.

The statement said the company was wound up after the directors concluded it was no longer reasonable for them to expect to attract new investment into the business, and to meet the company's debts as they fell due.