CBL Insurance Limited, the main operating subsidiary of CBL Corporation Limited, which has operations throughout the UK and Ireland, has been placed into interim liquidation, following an application by the Reserve Bank of New Zealand to the High Court.
According to a report from RBNZ, partners at insolvency firm McGrathNicol, Kare Johnstone and Andrew Grenfell, were appointed as interim liquidators. The High Court also issued confidentiality orders relating to the matter.
Policyholders should address queries about their own position to the interim liquidators, it said.
The Reserve Bank licenses and prudentially supervises CBL Insurance Limited in New Zealand.
Early this month, NZX suspended CBL Corporation’s stock due to concerns that the company failed to give complete and true information to the market. Its trading in stock was also placed at a halt. This came just days after CBL updated the market on its amended ratings by A.M. Best – it had its issuer credit and financial strength ratings downgraded under review with negative implications; and CBL Corporation’s issuer credit rating downgraded under review with negative implications.
CBL also announced, on February 14, its decision to exit its French construction insurance business as it looks to focus on core business products that are more profitable.
Days after these events being made known to the market, CBL’s chief operating officer Suzanne Tindal left the company.
On February 20, CBL Insurance Europe Dac (CBLIE), CBL NZ’s European arm, was directed by the Central Bank of Ireland to cease writing new business, until further notice.
The company is set to announce its full year-results on February 27.