Gibraltar-based motor insurer Tradewise Insurance Co. Ltd. will stop writing new or renewal business after Dec. 31, 2019.
However, the company said in a statement on its website that the Tradewise group's U.K. broking arm, Tradewise Insurance Services Ltd., has secured capacity from Berkshire Hathaway International Insurance Ltd., which will allow the broker to continue to offer its clients motor trade cover from Jan. 1, 2020.
The company said it had taken the decision voluntarily, and that "given the ever-increasing costs of operating a small insurer," its board had decided that entering run-off was in the best interests of its stakeholders. The insurer added that it informed its regulator, the Gibraltar Financial Services Commission, and that the run-off will be managed "in a controlled and solvent manner," with all existing policies continuing to be serviced and claims handled.
According to the Tradewise group's most recent solvency and financial condition report, Tradewise Insurance Co. wrote £98.5 million of gross premium in 2018, of which £89.5 million was in the U.K. It also wrote business in Spain, Portugal, Cyprus and the Republic of Ireland.