Neon Underwriting to be placed into run-off

Neon Underwriting is to be placed into run-off. Its US-based owner, American Financial Group, has unveiled plans to exit the London market in 2020. The Lloyd’s subsidiary produced approximately 7% of AFG’s P/C net written premiums in 2019.

The US business said it aims to reallocate capital to its other insurance businesses, which are expected to have the potential to earn targeted returns on investment.

“Neon and its predecessor, Marketform, have failed to achieve AFG’s profitability objectives since its purchase of Marketform in 2008,” it stated. The group explained that a review of Neon’s anticipated results for 2019 and its 2020 prospects had led to the conclusion that the Lloyd’s subsidiary would not meet the group’s return expectations.

AFG is expected to incur a non-core after-tax charge in the fourth quarter of 2019 for Neon reserve strengthening and expenses related to exit costs associated with the run-off.

    Share Story:

Recent Stories