The move comes after shares in CBL, a New Zealand listed company, were suspended from trading on 2 February.

CBLIE continues to otherwise operate normally and existing policies continue to remain in force, and has instructed its European legal counsel to request the Central Bank of Ireland to withdraw this direction. Failing this, CBLIE reserves it rights to take any action it deems necessary in order to protect its interests. 

As part of the banking covenant, CBLIE is also required to write to all appointed insurance brokers and distribution partners to inform them of the direction and to inform policyholders.

In a separate announcement on 14 February, CBL confirmed that it planned to exit its business arm handling insurance for the French construction business as of April 2018, with all related renewals ceasing from June 2018, subject to regulatory approval in France.

In the UK, the company provides fee protection insurance through Essex-based Professional Fee Protection.

Meantime, on 23 February 2018, the High Court of New Zealand appointed Kare Johnstone and Andrew John Grenfell as interim liquidators of CBL Insurance Limited (CBL Insurance) following an application to it by the Reserve Bank of New Zealand.

The interim liquidator has been appointed pending the outcome of an application to the Court for the appointment of a liquidator to CBL Insurance.

This appointment is not in respect of CBL Corporation Limited or any other companies in the Group.

CBL has a number of wholly owned subsidiary companies including CBL Insurance Europe, which is a regulated insurer in Ireland, two UK businesses, Professional Fee Protection, and European Insurance Services Limited, a managing general agency (MGA), and French MGA, Securities & Financial Solutions.

Professional Fee Protection has been approached for comment.

Report by Sara White