MGA ceases trading

NIG has bought the rights to access the book of Affinity Insurance Management (AIM), a managing general agent (MGA) that has recently stopped trading after capacity provider Munich Re hiked rates.

AIM is based in Liverpool and underwrote SME commercial combined and schemes business.

AIM’s sole capacity provider, Munich Re, demanded a liability rate hike in 2011, causing AIM to cancel its deal in December 2011 and look for other capacity.

After AIM failed to find this capacity, it approached NIG, who bought access to AIM’s book of commercial combined SME business in March 2012.

NIG sales and distribution director David Parry said: “We will underwrite those cases as they come up for renewal, as long as they fit our criteria.”

NIG is now deciding if it wants any of the schemes business from AIM.

Sister company

AIM’s sister company, called Affinity Schemes Insurance (ASI), is dedicated to schemes business.

NIG is also considering handing capacity to schemes run by ASI that were originally backed by Munich Re.

AIM and ASI founder Tony Docherty said AIM had stopped trading “for the foreseeable future, perhaps forever,” because of the tough market and difficulty finding capacity. He is now concentrating on schemes run by ASI.

He added: “With no sign of any improvement in rating in the UK general insurance market, ASI firmly believes that schemes and specialty business is the way forward for the foreseeable future.”

Munich Re UK and Ireland senior executive manager Manfred Aldag said: “Because of the very competitive environment, we only write business where we can expect a profitable result. Therefore, we decide in each individual case whether to renew an existing account or to write new business on the proviso that the business will be profitable.”