The Central Bank of Ireland has ordered CBL Insurance Europe dac, a branch of New Zealand-based specialist insurer CBL Corporation, to stop underwriting after regulatory authorities concluded the firm needed to raise capital to increase claim reserves for its French construction lines.
The French construction business makes up over 60% of its total gross written premiums, and CBL previously announced plans to quit the French business due to the significant amount of additional capital needed to meet future claims.
The firm’s shares in the Auckland-based CBL Corporation were suspended on February 2nd on the New Zealand stock market.
The Irish regulator confirmed the company will continue to operate and existing policies will remain in force.
The Central Bank of Ireland had started a “supervisory engagement process” for CBL’s Irish-regulated business less than two weeks ago and had issued directions for the group to “strengthen its capital base, reserves and reinsurance security,” the Irish times reported.
CBL’s Europe branch remains authorised to write business in Ireland, Belgium, Denmark, France, Italy, Norway, Romania, Spain, Sweden and the UK.
