Posted: Thu 6th Feb 2020

My office is ready to help Staveley Head employees in any way we can says Deeside MP Mark Tami

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Thursday, Feb 6th, 2020

Alyn and Deeside MP Mark Tami has said his office is ready to help former employees of Staveley Head “in any way we can” following the collapse of the Connah’s Quay based insurance firm yesterday. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Steven Muncaster and Sarah Bell, both of Duff & Phelps, were appointed as joint administrators on Wednesday. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

A letter sent to staff at the end of January warned the “majority of employees of Staveley Head were are at risk of redundancy.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Staveley Head Managing Director, Ashley Peters said in the letter, “the reason for this is the impact that the recent early termination of the Gefion binding agreement has had.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

At the start of December, Staveley Head chose to stop writing Gefion business which has had a huge impact on its own business.  ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Staveley said discussions had been underway with new “capacity providers” but have been left with “no choice other than to review our operating structures, in particular resourcing levels.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

In his letter to staff, Mr Peters said, “The commercial reality of this situation simply makes this untenable and not sustainable, therefore it is imperative that we react to the current situation. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Staveley Head has been acting as the managing general agent for Scandinavia-based insurance company Gefion and selling insurance underwritten by them. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

The company also had difficulties replacing capacity following the collapse of unrated provider Qudos Insurance ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

The joint administrators say they are working with the management team to try to sell the remaining business. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Despite the collapse, the firm’s website is still operational though anyone calling the office on the phone number advertised is greeted with a recorded message stating the office is now closed. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mark Tami MP said he understood that around 60 workers have been made redundant with immediate effect. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mr Tami said “It’s concerning that a valued local business has been placed into administration and that a number of jobs have been lost. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

I understand that a redundancy consultation had begun prior to the company entering administration after an underwriting contract was cancelled so this was not a bolt from the blue, but it has come at a very bad time for employees. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

I trust the administrators will be working to stabilise the business and retain as many jobs as possible. In the meantime, my office stands ready to help in any way we can.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Steven Muncaster said: “Staveley Head Limited was engaged in a three-year contract with its main insurer, which was prematurely terminated in November 2019 as a result of the insurer’s financial issues. This led to an overnight loss of the majority of Staveley Head Limited’s business. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“Since then the directors of the business have been working with advisors to either secure an alternative insurer or a purchaser.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

He continued: “Unfortunately, due to the specialist nature of the business, these outcomes have not been achieved and the Company has now entered Administration. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“As a result, it is with regret that the majority of staff have been made redundant and we are now working closely with management to secure a sale of the remaining business and/or its book. We encourage any interested parties to come forward as soon as possible.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

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