CBL in trouble: Zurich steps in for European arm

Firm’s MD outlines what happens next in administration

CBL in trouble: Zurich steps in for European arm

Insurance News

By Terry Gangcuangco

The news just keeps on coming about CBL Corporation, the New Zealand-headquartered parent company of troubled providers CBL Insurance and CBL Insurance Europe. We’ve already told you about its main operating subsidiary entering interim liquidation – and now more news has broken about the firm.

In a media release published today, CBL said voluntary administration will allow the insurance group to continue trading through a formal process at parent-company level while it determines the best way forward for stakeholders. Meanwhile a report by the New Zealand Herald cited managing director Peter Harris as saying the move will prevent further action against CBL Insurance from other watchdogs after that taken by the Reserve Bank.

“That means that everything from here-on operates under a protective umbrella of voluntary administration,” Harris reportedly told the newspaper.

The administration, however, only relates to New Zealand-domiciled companies and does not affect any other entities owned by CBL Corporation Ltd. Those that are not affected include Assetinsure and DepositPower in Australia, as well as Europe-based PfP, SFS, and European Insurance Services.

Appointed by the board as voluntary administrators were KordaMentha New Zealand partners Brendon Gibson and Neale Jackson.

Giant save in Ireland
Over in Ireland, where CBL Insurance Europe dac is registered, major insurer Zurich is stepping in after the European arm was ordered by the Central Bank to stop writing new business until further notice.

The Sunday Times said the Swiss insurance giant, which owns managing general agent Wrightway Underwriting, will take over thousands of existing home cover policies unaffected by the Irish reserve bank’s direction. According to the report, CBL’s Homeguard policy has been distributed in Ireland through Wrightway Underwriting since 2015.

Approximately 8,000 policies will be gradually transferred to Zurich.   

The Dublin-based unit, which enables the group to write business through the European Union, was acquired by CBL from Rabobank Group in 2013. It needs to resolve supervisory issues with the Central Bank of Ireland before it can resume writing new business.

Related stories:
CBL Insurance placed into interim liquidation
CBL Insurance Europe ordered to stop writing new business

Keep up with the latest news and events

Join our mailing list, it’s free!