Bollington cuts ties with Gefion

Bollington suspends trading with the unrated Danish insurer, which has been providing capacity for its MGA, Anjuna Underwriting, since 2017.

Bollington has confirmed that it has suspended trading with unrated Danish insurer Gefion Insurance until further notice. 

The move is effective from Monday 17 February. It was first reported by sister title Post.

Bollington stated that it will continue to offer alternative terms to brokers on a wholesale basis, and to retail clients from their existing A-rated capacity providers for new business and renewal cases.

Chris Patterson, group managing director, commented: “We have kept very close to this situation for some time now and have regular dialogue with Gefion and our reinsurance brokers regarding their financial position.

“Our main priority is to protect the interests of our broker partners, their clients and our own customers.”

He continued: “Until further notice, we have made the business decision to suspend our trading relationship. 

“We have alternative A-rated capacity providers available on our insurance panel and welcome our brokers to utilise these facilities.”

MGA
Bollington launched its managing general agent (MGA), Anjuna Underwriting, in October 2017.

At the time, the business stated that capacity for the new MGA would be provided by Gefion in a deal to write £80m of business over a five-year period.

In December 2019, UK-based motor MGA Pukka revealed that it had stopped writing new business with Gefion.

Gefion recently issued a response to the news that Staveley Head had gone into administration, stating that it did not prematurely terminate its contract with the business.

Steven Muncaster and Sarah Bell, both of Duff & Phelps, were appointed as joint administrators for Staveley Head on 5 February 2020.

In a statement, the global advisor said the move is a result of solvency issues at the broker’s main insurer, which led to “an early and unexpected termination of the contractual arrangement which was in place”.

Solvency
The troubled provider’s solvency issues have been in the headlines lately. It recently reported that its solvency ratio for 2018 had fallen from 72% to 49% after it published corrected information for its 2018 annual report.

The provider was recently ordered by the Danish Financial Supervisory Authority (DFSA) not to expand its scope of business, with the regulator stating that Gefion had not complied with its solvency capital requirement.

Last December, the DFSA published a liquidity order in which it stated that Gefion needed to have liquid assets of at least €5m (£4.2m) by the end of the month.

Insurance Age revealed in January that the business had complied with the order following further investment from its shareholders.

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