Regulator acts on troubled insurer
The Central Bank of Ireland has gained High Court approval to appoint Kieran Wallace as provisional administrator to CBL Insurance Europe dac (CBLIE).
It came less than a week after the Central Bank ordered the New Zealand-owned insurer to stop writing new business here.
The regulator told the court yesterday that its concerns include the manner in which the insurer's business has been conducted and that it had failed to make adequate provision for its debts. CBLIE is believed to have about 12,500 Irish household policies, including construction-related credit, and also provided cover against insolvency on Ryanair's travel insurance policy.
The Central Bank said it took the action to protect those policyholders. Existing insurance policies continue to remain in force. However, policyholders have been told to arrange alternative cover as soon as possible.
CBLIE is a wholly-owned subsidiary of CBL Corporation Limited, which is incorporated and domiciled in New Zealand and listed on the stock market there. The Kiwi parent itself had administrators appointed over the weekend.
Earlier in February, Irish regulators ordered CBLIE to strengthen its capital base, reserves, and reinsurance security, given its exposure to its parent company.
CBL Corporation had said it needed to boost reserves to shore up its French construction insurance business.
CBLIE was registered in Ireland and authorised to write business in Ireland and on a freedom of services basis in Belgium, Denmark, France, Italy, Norway, Romania, Spain, Sweden and the UK.