UK General shifts motor book to Ageas as QBE cuts back

Underwriting agency UK General has shifted its commercial motor business back to Ageas from QBE after QBE’s appetite for the business waned.

The move comes less than a year after UK General signed the capacity deal with QBE, under which QBE became the sole risk carrier for UK General’s commercial programme.

Despite the change to the motor business, which is written by UK General division Rural, QBE will remain the carrier for UK General’s non-motor commercial risks.

UK General chief executive Peter Hubbard said: “UK General still has a constructive relationship with QBE.

“All that has happened is that its underwriting appetite has changed and as a result, we’ve moved our commercial motor portfolio to Ageas. The new arrangements for new business and renewals came into effect from the beginning of July.”

Hubbard said it was for QBE to explain the reasons for its change in appetite. But he added: “From our standpoint the underwriting appetite of insurers waxes and wanes and this is no different.

“It’s a technical issue rather than a relationship one and we still have an ongoing relationship as QBE carries the rest of our non-motor commercial risks, including property owners, retail, office and leisure capacity.”

QBE declined to comment, referring queries about the change to UK General.

A spokeswoman for Ageas said: “We’re delighted to once again be providing capacity for the Rural commercial motor book, which is a natural fit with our scheme profile.”

UK General signed the commercial capacity deal with QBE last year because Ageas, its main capacity provider, did not have the additional appetite UK General was looking for at the time.

Hubbard said: “Ageas has proved to be a strong partner for UK General in recent years, and our agreement with it has been extended to 2018.

“But we wanted to broaden and deepen our general SME commercial appetite in order to grow the commercial book. Ageas’s risk appetite did not cover those areas where we wanted to grow, and QBE stepped in.”

The shift in the commercial motor book is a coup for Ageas, which is the capacity provider for UK General’s schemes business. Schemes business accounts for around 80% of UK General’s total book.