Gibraltar-based carrier Horizon Insurance has ceased writing new business and changed its status from insurer to managing general agent.
The car and van insurer, formerly known as Octagon, said its directors decided to stop renewing and accepting new motor policies after December 31, 2016.
All policies issued up to that date will remain in force and all customer, policyholder and claimant enquiries should continue to be directed to Octagon Insurance Services, the company said.
Meanwhile, all claims should continue to be submitted to the company's claims handler, Catalyst Consulting Solutions.
“The directors took the decision to cease to renew or accept new motor policies in 2017 having been unable to secure additional funding that would enable the company to meet its business plans for 2017 and beyond,” Horizon said on its website.
“In taking this decision, the Board has acted in the best interests of policyholders and other creditors,” it added.
Horizon said it remains solvent and the Board fully expects to meet all policyholder and other liabilities.
“The Board is confident that it will be able to conduct an orderly runoff of the business and, on the basis of information available, all policyholders and other creditors will be paid in full,” the company said.
Gibraltar’s
public service broadcaster GBC reported online that Horizon’s latest move was related to the UK’s vote to leave the European Union.
Ipe Jacob, chairman of Horizon’s parent company Europa, was quoted by
GBC as saying that it was not a good strategy to inject more money into the company “in circumstances of huge uncertainty post Brexit and the position of Gibraltar.”
According to the report, the Gibraltar Financial Services Commission now lists the company as an insurance intermediary.
The insurer continues to work with the regulator to “make sure policyholders are protected,” the report said.
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