Shakespeare Underwriting, chief distributor of Arab German Insurance's (AGI), went into administration this week.

The underwriting agent will be placing no new business, but advised brokers to contact them as normal regarding existing policies.

Shakespeare came under criticism after Jordan-based AGI refused to honour millions of pounds worth of claims last year, including those from businesses affected by floods in Boscastle.

Administrator Tenon Recovery said it was now looking to sell the business as a going concern.

Businessman Jayson Hollier is understood to have made an offer for the company.

The underwriting agent is understood to use Legal & General for household policies, Landmark for motor policies and Gresham for Lloyd's risks.

Patrick Elward, of Tenon, said: "The ideal outcome for us would be to find a suitable buyer as soon as possible. We will continue to keep a team in place in the meantime."