United Kingdom-based Magian Mutual Insurance Company said it is closed to new business as of Dec. 31.
The mutual insurer was established by PI Direct in 2003 to provide professional indemnity capacity.
Magian Underwriting (MU) managers will underwrite current members and new insureds through a new underwriting agency, backed by Heritage, the Lloyd's Syndicate, the company said.
Magian Mutual was closed by the board and the managers to maximize profits available to the members. Magian said the underwriting results were “encouraging.”
Magian said the tail of outstanding liability has been reinsured with Everest Re, on terms that save much of the costs normally associated with closure and “which provide members with a high level of security.”
Magian Underwriting will be writing from Jan. 1, offering coverage up to ?3 million ($5.7 million at the current exchange rate) indemnity limit per risk. The company said it would continue to insure quality risks, with high compliance standards. The existing underwriting team and the claims management team, through Collegiate Management Services, will continue.
Magian said it will quote only through three or four specialist brokers that meet certain service standards set by Magian and have the requisite specialist knowledge of the financial services industry.
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