The Maritime and Commercial High Court in Denmark declared Qudos Insurance A/S bankrupt.
The Central Bank of Ireland said existing policies are still in force, but will automatically cancel three months from the date of the bankruptcy. The financial institution advised remaining Irish policyholders to secure alternative coverage and report any claims to the Danish Guarantee Fund.
Qudos primarily provides commercial and private motor insurance, as well as household insurance, in Ireland.
The Danish Financial Supervisory Authority recently said there is a "substantial" risk that Qudos will not be able to fulfill its obligations. Qudos announced in October that it stopped underwriting new business. In November, Qudos reported noncompliance with the minimum capital requirement to the regulator and was placed into liquidation.