QBE has announced that it is to close its Middlesbrough office.

The company said that its motor fleet claims handling operations will be relocated to its operation at Coval Wells in Chelmsford and non-motor claims will be moved to QBE's Leeds office.

The change is expected to be completed in early 2006, with the claims team in Chelmsford becoming fully operational by April.

QBE said moving the fleet claims handled in Middlesbrough under the same roof was "a logical step which will enable QBE to provide more focused client relations, with one point of contact, a single, consistent claims handling process and an enhanced use of the available QBE resources at Chelmsford".

Andrew McBride, claims director, QBE Insurance, said: "Chelmsford is undoubtedly a positive development for our customers. At QBE, however, we must bear in mind that this will be a difficult time for the staff in the Middlesbrough office.

"All staff in Middlesbrough have been offered relocation assistance, and while some may choose to relocate, others may decide not to do so and will be leaving the organisation."

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