Reuters is reporting that an Irish court has appointed an administrator to CBL Insurance Europe (CBLIE), a wholly owned subsidiary of New Zealand’s CBL Corp Ltd, to avoid the risk of a “disorderly failure”, the Irish Central Bank announced on Monday.
The Irish Independent is reporting that CBL is active in the construction insurance sector in Ireland and has an estimated 12,500 policyholders in Ireland. Existing policyholders are advised to contact their broker for updates. Earlier this month the Irish regulator ordered CBL to strengthen its reserves and re-insurance security, plus stop writing new business. This was contested by CBL who took legal advice on the Central Bank’s direction.
The Irish Central Bank last week ordered CBLIE to cease writing new business with immediate effect and on Monday said that it was in a distressed financial position and had failed to address issues brought up by the bank in recent months.