SETANTA CLOSES DOORS IN IRELAND

Malta-based Irish commercial motor insurer Setanta Insurance Company Limited has gone into runoff, although offices will remain open to handle claims. In an announcement last week the insurer said that it ceased writing new business and issuing further renewals with effect from close of business Friday 24 January 2014. The company has appointed Heritage Insurance Management (Malta) Limited to undertake the run-off process after informing the Malta Financial Services Authority of its intensions. Setanta Insurance was established in 2007 and was authorised to write business in Ireland by the Malta Financial Services Authority on a freedom of services basis. The insurer said that its Dublin office will remain open to handle existing and any future claims. Citing the Irish Brokers Association, the Irish Independent newspaper said that the move is likely to mean higher motoring insurance rates in Ireland. Some 100,000 policyholders, mostly van owners, are insured with the company, although Setanta is honouring their contracts. The insurer closed its doors after it was unable to attract additional funding, the newspaper reported