The Central Bank of Ireland ordered CBL Insurance Europe dac, a unit of New Zealand-based CBL Corp. Ltd., to stop writing business, effective immediately.
CBL Insurance Europe, which offers nonlife insurance products in Ireland and in a number of countries within the EU on a freedom of services basis, continues to operate, the central bank said in a Feb. 19 statement. Its existing policies will also remain in force.
The insurer was required to explain the order to its appointed insurance brokers and distribution partners, who in turn are asked to inform policyholders.
In response, CBL said it sought legal advice in Europe and has instructed its legal counsel to request the withdrawal of the regulatory order.
Earlier in February, New Zealand's stock exchange suspended CBL's shares from trading amid concerns over whether the company has provided all material information to the market. Local and overseas regulators have also questioned the company's adequacy of reserves for its French construction insurance business, which CBL has since decided to exit.