Hibernian Group is not interested in taking on large new commercial risks, its head of underwriting Mr Dick O'Driscoll has confirmed. The news is another blow for large businesses already coping with rapidly rising premiums. The group has told brokers its strategy is to concentrate on small and medium sized businesses and personal business.
With indications that some of the Lloyds syndicates which write large Irish business risks are exiting the market and Hibernian "unenthusiastic" about renewing some of its existing large business risks, some large companies may find it difficult to get insurance or have to pay significant premium increases.
Businesses in sectors with high claims records, such as hotels and nightclubs, could face the greatest problems. The main insurers of large commercial risks in the Irish market are AIG and Allianz. Insurers classify companies paying annual premiums exceeding £100,000 (€126,974) as large risk customers.
Hibernian is focusing on businesses with annual premium payments of £5,000-£100,000, according to Mr O'Driscoll. He added that the group was experiencing capacity constraints as it concentrated on the consolidation of the companies that now formed the Hibernian Group and on "re-rating" - in effect applying price increases - to its existing businesss.
Insurers have been applying premium increases of 40 per cent plus in recent weeks.
Hibernian Group was created through the merger of the Irish businesses of Norwich Union and Commercial General Union, itself a merger between Commercial Union - which traded here as Hibernian since it bought the Irish group - and General Accident.
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