Former Gefion and Qudos user Staveley Head goes into administration

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Move follows solvency issues at the broker’s main insurer as administrator initiates fire sale and says majority of Staveley Head's 85 staff have been made redundant.

Motor broker Staveley Head has gone into administration, with Steven Muncaster and Sarah Bell, both of Duff & Phelps, appointed as joint administrators on 5 February 2020.

The global advisor said the move is a result of solvency issues at the broker’s main insurer, which led to “an early and unexpected termination of the contractual arrangement which was in place”.

According to Muncaster, the majority of staff have been made redundant. He added that the joint administrators are working with the management team to try to sell the remaining business and/or its book.

Capacity
It is understood that Staveley Head struggled to replace capacity following the collapse of unrated provider Qudos Insurance.

It also previously used troubled Danish provider Gefion but that relationship also ended leaving the broker without capacity. Both providers sought to sue Staveley Head for £9m last year.

Insurance Age has reached out to Staveley Head for a comment but was met by an automatic voicemail message which said that the office is now closed.

However at the time of writing the website was still active.

Staveley Head was established in 1991 and provided niche insurance products both in commercial and personal lines. Headquartered in Deeside, Wales, the broker had 85 employees.

Its product range included taxi insurance, motor trade insurance, HGV insurance, courier insurance, van insurance, motorhome insurance and campervan insurance.

Policy Plan
A spokesperson for Duff & Phelps confirmed to Insurance Age that Policy Plan, which is an appointed representative of Staveley Head, remains solvent, but added that it had also been affected by solvency issues at Gefion.

A statement on Policy Plan’s website, dated 2 December 2019, read: “We are no longer providing quotes with Gefion Insurance A/S. Quotes already provided and renewals already invited with Gefion Insurance A/S will be honoured.

“We are in advanced discussions with other insurers with a view to replacing that carrier.”

Sale
Muncaster commented: “Staveley Head Limited was engaged in a three-year contract with its main insurer, which was prematurely terminated in November 2019 as a result of the insurer’s financial issues. This led to an overnight loss of the majority of Staveley Head Limited’s business. 

“Since then the directors of the business have been working with advisors to either secure an alternative insurer or a purchaser.”

He continued: “Unfortunately, due to the specialist nature of the business, these outcomes have not been achieved and the Company has now entered Administration.

“As a result, it is with regret that the majority of staff have been made redundant and we are now working closely with management to secure a sale of the remaining business and/or its book. We encourage any interested parties to come forward as soon as possible.”

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