High Court appoints provisional administrator to Irish arm of troubled insurer CBL Insurance Ltd
The Central Bank of Ireland has gained High Court approval for the appointment of Kieran Wallace as provisional administrator appointed to CBL Insurance Europe dac (CBLIE).
The move comes less than a week after the Central Bank ordered the New Zealand owned insurer to stop writing new business.
The Central Bank said it took the action to protect CBLIE policyholders. Existing policies continue to remain in force. However, the Central Bank is recommending that policyholders contact the firm directly, or their broker to arrange alternative cover as soon as possible.
CBLIE insures around 12,500 policies. It mainly underwrites construction-related credit and financial surety insurance, as well as professional indemnity and property insurance, and travel bonding.
It is a wholly owned subsidiary of CBL Corporation Limited, which is incorporated and domiciled in New Zealand, and which 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, headed up by group CEO Peter Harris.
The company had said it needed to boost reserves to shore up its French construction insurance business.
The Central Bank said CBL 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.