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.
-
Barclays begins paying up to £100 compensation to customers after banking outageBarclays will pay up to £7.5 million in compensation to customers after its banking services were disrupted by an IT outage
-
Review: Shangri-La Paris – an ode to the world’s best foodNatasha Langan enjoys fine French and Chinese cuisine at the Shangri-La Paris
