UK General's lawyers seek £3m from AmTrust Europe

UK General Insurance Group is suing AmTrust Europe for more than £3m in a dispute over a Gallagher-brokered social housing contract.

UK General claims that AmTrust only gave seven days’ notice that it was going to pull capacity instead of the agreed 180 days.

Gallagher was picked by UK General in early 2010 to find an underwriter for UK General’s social housing book, according to papers filed at the High Court.

In May 2010 Gallagher told UK General that AmTrust was interested in underwriting its social housing business.

UK General and AmTrust then agreed a delegated authority deal to start on 1 August 2010, helped by Gallagher, the writ says.

Part of the deal was that AmTrust would not cancel its side of the bargain without giving at least 180 days notice in writing, it is claimed.

However, UK General alleges that AmTrust only gave seven days’ notice before cancelling the deal by email on 18 October 2010.

UK General is claiming £2.22m for lost opportunity to find a replacement social housing underwriter and £800,000 for lost revenue, damages and interest.

“As a result of the defendant’s wrongful act, the claimant has lost the entirety of its social housing book,” UK General said in the court papers.

Gallagher is not mentioned in the writ as being involved legally.

AmTrust, UK General and Gallagher declined to comment.