When Groupama Insurances announced that it would not be sold after many months of being on the market, Backchat was mystified.
Groupama's reason for not selling was that the market was too good at the moment. There were plenty of juicy rate increases for those who had the capacity, it argued.
So, why did the French-owned insurer wait until February to make the announcement, when most insurers were predicting massive rate hikes just weeks after the 11 September tragedy. Well, it seems that there could be more than a whiff of truth in the rumour that Groupama just couldn't raise a decent price in the market and gave up.
One source, who was offered the company, said a figure of £10m was mentioned. "But when I asked who would be paying, them or me, negotiations broke down," he said.
