Lumley Fills Potential Indemnity Insurance Void
Lumley Insurance Fills Potential Indemnity Insurance Void
Statement made by Rieny Marck, Managing Director,
Lumley General Insurance ( NZ ) Limited
The prospect of New Zealand businesspeople, professionals and trustees losing access to a key source of indemnity insurance has been averted by Lumley General Insurance purchasing the business of USA based, St Paul's insurance.
In purchasing the business, Lumley has acquired business with a premium income of more than $5 million and a staff of six.
The decision made by St Paul's in December to withdraw from the New Zealand market after 18 months of operation had the potential to limit the liability insurance options available in New Zealand.
There is a growing demand for indemnity insurance in New Zealand among the likes of directors, senior corporate executives, trustees and professionals such as accountants, especially as legislation and regulations place even tougher fiduciary responsibilities on decision makers.
Without access to personal liability insurance many in these positions would question the wisdom of taking on the responsibilities they do as they face the potential of personal ruin.
In addition to administering St Paul's existing claims, Lumley will set up a new division specialising in legal indemnity insurance products and the development of comprehensive liability management programmes of relevance to the New Zealand market. These services and products will be sold through independent broker advisers.
The retention of the services of Gary Thomas and Dean Edwards, the former senior executives of St Paul's operations in New Zealand, will give us the expertise and experience on which to base our operations.
Lumley is New Zealand's sixth largest non life underwriting company. It has
- operated in New Zealand for some 80 years.
- gross written premium levels of $170 million and at 30 June 2001 has assets of $174 million.
- an "A financial strength" rating from Standard & Poors.
The company is a wholly owned subsidiary of Edward Lumley Holdings Limited of the United Kingdom.