It’s been a rough 12 months for VIBE Syndicate Management. After announcing that the accident & health and property D&F (direct and facultative) business units of VIBE were closing back in September – less than a year after reporting that VIBE would stop underwriting new direct and facultative (D&F) open-market property insurance – the company has now broken the news that effective Dec. 31, 2019, the Lloyd’s syndicate will be placed into a planned run-off.
“It was with considerable regret that our board reached the conclusion that the business does not have the right scale to thrive in the current market environment,” said Joe England, CEO. “On this basis, we have taken the difficult decision to cease underwriting and place the business into a solvent and orderly run-off process.”
While the VIBE board had been actively seeking additional capital to create a sustainable and profitable Lloyd’s and London market business in an effort to grow, continued England, the regulatory and organisational burdens of today’s insurance market put the pressure on carriers to reach sufficient scale to absorb required operating costs.
“However, we were not able to secure the support we need to grow our Lloyd’s platform to achieve that scale in a reasonable timeframe,” he commented, adding, “During this planned run-off, we will ensure that valid claims continue to be met, that business relationships and portfolios with brokers and clients are transferred as efficiently as possible, and that our staff are fully supported through the transition.”