Insurance giant RSA said it would run down its Czech motor insurance business because it was not generating sustainable profits.
RSE will close DIRECT Pojiovna, its direct motor insurer in the Czech Republic, to new business and will place the existing portfolio into run-off with immediate effect.
The company said the move would not impact existing customers during the remainder of their policy term.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It added that it remained committed to honouring the liabilities of the Czech operation until the run-off of the business was complete.
"Our strategy is to achieve scale in our chosen markets to deliver a sustainable underwriting profit. We felt unable to do this in the Czech Republic within a reasonable timeframe and, as a result, have taken the decision to exit the market," said Group Chief Executive Simon Lee.
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
