Gibraltar insurer withdraws £20m UK motor capacity in wake of discount rate cut

Car crash

Casualty & General Insurance Company Europe has withdrawn its £20m capacity with Hawkwell, a specialist motor MGA that launched in 2014. The company said the decision to reduce to Ogden discount rate from 2.5% to minus 0.75% had made the motor market "unviable". CGICE CEO Danny Gibson said: "The recent decision by the Ministry of Justice to change the discount rate has made the motor business we write unviable, as a result we have to deploy our capital in our other classes of business.