VIBE Syndicate Management (VIBE), has said its Syndicate 5678 will close on 31 December 2019, and will be placed into a planned runoff.
The decision comes two months after VIBE announced the closure of its Accident & Health and Property D&F business units with immediate effect.
Company CEO Joe England, (pic) said: “It was with considerable regret that our board reached the conclusion that the business does not have the right scale to thrive in the current market environment. On this basis, we have taken the difficult decision to cease underwriting and place the business into a solvent and orderly run-off process.”
“Our ambition was to grow the business and we have been actively seeking additional capital to create a sustainable and profitable Lloyd’s and London market business. The regulatory and organisational requirements of today’s insurance market require carriers to reach sufficient scale to absorb required operating costs. However, we were not able to secure the support we need to grow our Lloyd’s platform to achieve that scale in a reasonable timeframe.”
He added: “During this planned run-off we will ensure that valid claims continue to be met, that business relationships and portfolios with brokers and clients are transferred as efficiently as possible, and that our staff are fully supported through the transition.”
In September when he announced the close of its A&H operations Mr England said the firm would “continue our strategic review of the VIBE business”.
He blamed market conditions for the decision to cease underwriting new and renewal Accident & Health and Property D&F business.
However he said the decision would be reviewed at “such time as the market returns to a more sustainable economic footing”.