The Denmark insurance company Alpha Insurance A/S has filed for bankruptcy.
The firm was placed into liquidation on March 4 and four days later the liquidators filed a petition for bankruptcy.
In a statement released on March 5, 2018, Alpha said it had halted all underwriting and was entering into into run-off. The company blamed its collapse on the failure of one of its largest reinsurers, CBL Insurance Ltd., which New Zealand’s High Court had placed into liquidation. The Central Bank of Ireland had also ordered CBL to stop writing business.
In February, A.M. Best downgraded CBL citing significant deterioration in CCL’s operating performance in fiscal year 2017, due primarily to a large reserve charge meant to strengthen reserves for CBL’s long-tail French construction insurance business.
Alpha Insurance A/S is a Danish insurance company, which operates in Denmark and is authorized to write business in all EU/EEA countries on a freedom to provide services basis.
Alpha insured a number of motor fleets in the UK.
The Danish Guarantee Fund for non-life insurance undertakings will cover some Alpha claims incurred prior to the date of bankruptcy and up to four weeks after the curator has notified policyholders of the bankruptcy.
Officials advised that Alpha policyholders with a compulsory insurance policy, or insurance policies equal to compulsory insurance, must obtain a new insurance policy with another insurance company as fast as possible to obtain their compulsory insurance cover.
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