CBL Insurance Europe has been ordered by The Central Bank of Ireland to bolster its capital and reserves.
Based in Dublin, CBL provides builder’s warranty, income protection, travel and cargo and reinsurance support across EU markets, with significant business in France, Italy, Scandinavia.
The move comes after regulators in New Zealand placed the group’s parent company, CBL Corporation, under review and halted the trading of its shares last week.
In a trading update issued last week, CBL Corporation said the Reserve Bank of New Zealand had raised concerns about the adequacy of reserves in its French construction insurance business.
The French market equates to 61% of CBL’s gross written premium, totalling £130m in 2016 according to the Auckland-based firm’s full year results.
“The Central Bank of Ireland has commenced a supervisory engagement process in respect of CBL Insurance Europe,” the company said.
“As a result, the Central Bank of Ireland has issued a number of directions and conditions on CBL Insurance Europe intended to strengthen its capital base, reserves, and reinsurance security.”
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