Ryanair looking to drop CBL Insurance Europe amid company problems
Ryanair has confirmed that it is looking to drop CBL Insurance Europe, who provided cover against insolvency on the airline’s travel insurance policy.
CBL Insurance Europe is in crisis after the Irish Central Bank ordered it to stop writing new business.
New Zealand-based parent CBL Corporation provided Ryanair’s policy from its European subsidiary, CBL Insurance Europe, based in Dublin.
A Ryanair spokesman said: ”We note the statement issued by the Central Bank today (19 Feb) in relation to CBL (who provided cover against insolvency on Ryanair’s travel insurance policy). Our travel insurance partner, Europ Assist, has commenced a process to source an alternative provider.”
A nightmare three weeks has seen CBL halt trading on two stock markets (Australia and New Zealand), its credit rating downgraded, being ordered to increase its capital by two central reserve banks, its chief operations officer leave after only two weeks in the job, pull out of its biggest business (French construction insurance), and predict a net loss of around NZ$75m-$85m.
The company needs to find at least NZ$100m dollars to plug a reserves hole.