Brokers including Bollington, Carol Nash and Lark are up for sale, as Groupama gets rid of it’s UK operations in an effort to shore up its EU debt position.
According to Insurance Age, the group is looking to raise over of £300 million with the sale in an effort to combat its exposure to the EU debt crisis.
Groupama, the French based insurance and banking group, has been having credit troubles recently with Standard & Poor’s placing them on rating watch negative and warning of a potential credit rating downgrade.
Eric Galbraith, chief executive of the British Insurance Brokers’ Association, said he was sad to see Groupama go but hoped that it would be business as usual for brokers, Insurance Age reported.
“Brokers just have to watch what’s going on – I hope the service and business’ position will carry on as usual and hopefully there won’t be too much uncertainty,” he said.
“My concern would be that this is perhaps a further reduction of the market which reduces competition and from a broking point of view, a reduction in competition is a concern.
“Groupama has always been a player in the market and a supporter of brokers so I am sorry to see them go” he added.
