Future of staff up in the air and insurer clients assessing their options
Loss adjuster Merlin has plunged into administration, leaving staff uncertain over their future and insurer partners assessing their options.
Merlin has been hit by the benign claims environment and an overcapacity in the loss-adjusting sector.
Restructuring specialist BDO are handling the administration. The loss adjuster revealed in May this year that it was making up to 70 staff redundant following the loss of its account with home insurance specialist Legal and General.
BDO partner Mark Shaw said: “Merlin has been affected by the ongoing impact of market conditions, including an increasingly benign claims environment and an overcapacity within the loss adjusting sector. In recent months, Merlin has been working through plans to restructure its operations and has also been actively engaged to find an investor or purchaser of the business without success.
“The administrators are taking all necessary steps to mitigate losses to customers insofar as possible. It is expected that customers will be contacted directly, either by Merlin or their insurers, about the administration and to inform them about next steps in relation to pending claims. We thank the employees for their support at this difficult time.”
The companies entering administration are:
- Merlin Claims Services Holdings Limited
- Merlin Claims Services Finance Limited
- Merlin Claims Limited
- Merlin Commercial & Complex Claims Limited
- Merlin Liability Claims Limited
- Merlin Restoration Repair Services Limited
- Merlin Surveying Services Limited
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