Liberty Specialty Markets, part of Liberty Mutual Insurance Group, is to leave the coach industry.
The insurer said the decision means that Liberty’s motor book will close to new business from November 1, 2015 and will close to renewals from January 1, 2016.
Liberty entered the UK and motor market in 2010 focusing on niche lines such as coach fleets and small commercial fleets. It said it is in the process of contacting brokers to inform them of the decision and discuss arrangements for the book’s orderly run-off.
Alan Telford, Chief Underwriting Officer – Commercial, said: “This decision is the right one for Liberty. Motor represents a small fraction of our overall business and, as a niche book, lacks synergy with our other classes of business and overall strategy going forward.
“We will only be in any market where we can give a stable and ongoing commitment to our customers and in these circumstances this is not possible.”
A spokesperson from Arthur J. Gallagher said: “The news that Liberty Specialty Markets is to make a managed exit from the UK motor insurance market is disappointing, as its active participation since 2010 in the bus and coach sector has helped maintain a competitive marketplace where insurer appetite has traditionally been limited.
“However, as has happened in the past, this will inevitably open the door to other opportunities and we are actively exploring and securing alternative markets in the retail and reinsurance space to ensure our clients can make a smooth transition to a sustainable solution, tailored to their individual needs, upon renewal of their programme.”