HSBC’s motor insurer in run-off as takeover flops

HSBC has put its underwriting business, HSBC Insurance UK, into run-off after a takeover deal with Equity fell through.

Up to 45 staff could be made redundant at the bank’s Norwich office, though HSBC will try to redeploy them elsewhere. Insurance Times understands that, had the deal gone through, staff would have been kept on at the motor insurer, formerly known as Corinthians Policies.

HSBC pulled out of the takeover at the eleventh hour.

An HSBC spokesman said: “Following a strategic review earlier this year, HSBC Insurance will cease to underwrite motor insurance business through its two insurance operations, HSBC Insurance (UK) Ltd and HSBC Insurance Management Services Ltd.”

He said underwriting would stop immediately, but the company would continue to service existing policyholders until their policies were due for renewal.

Any quotes issued before 2 September would be honoured for 30 days from the date of issue.

HSBC Insurance staff based in Norwich, Birmingham and Brentwood would be briefed on the implications of the announcement and the longer-term plans for the insurance business, he said.

The Norwich office would close on 1 December. The other two sites, at Birmingham and Brentwood, would remain open.

The company would now focus on life, pensions and investments business.

Equity chairman Neil Utley, who led the bid, declined to comment.