Mulsanne and Complete Cover parent slips to 2021 loss

The provider reported the significant year-on-year increase was driven by continuing to exploit niche areas in the market and building on existing and new broker relationships.

However, the insurer added it had still taken action to address the poorer performing segments of its book alongside expanding where it believed there would be better returns going forward.

Mulsanne also detailed that under a new quota share with reinsurers during the year it increased the percentage of risk ceded keeping only 37% on every motor risk.

The figures came as parent company Key Topco – which also owns Complete Cover Group and Hyperformance, Dayinsure, Abacai Technologies as well as Key Claims and Administration Service – revealed an overall loss after tax of £4.7m.

The holding company had recorded a £61m profit in 2020. However, that year the business benefited from a £59.7m restructuring credit having been bought by Sun Capital Partners.

Complete Cover

As previously reported by Insurance Age, loss after tax at Complete Cover grew to £2.49m in 2021, from a deficit of £191,000 the year before.

The broker introduced a restructuring programme in the fourth quarter of 2021 to significantly reduce the UK workforce with much of the customer facing activities outsourced to South Africa.

The Key Topco filing at Companies House also listed that Key Claims and Administration Service, a claims handling and policy servicing business, made a profit of £500,000 in the year to 31 December 2021 reversing a loss of £600,000 in the previous 12 months.

Abacai

In February 2021 the group announced a motor insurtech joint venture with Abacai Holdings led by former Aviva boss Mark Wilson. Abacai Technologies launched in December. According to Key Topco, the business is “on track with its ambitious targets and is set to process £60m of run rate GWP by December 2022”.

Wilson-led Abacai rolled out motor insurance brand Boom this year having registered the trading name at the Financial Conduct Authority last December. 

The Companies House document also set out that Key Topco’s ultimate parent company, Ormiston Holdco, bought Dayinsure in March 2021 rolling it into Key Topco in October for £50m. Dayinsure delivered £3m of revenue for 2021 and £1.1m of profit.

Founded in 2005 Dayinsure specialises in temporary cover for cars, vans, motorhomes, learner drivers and business car insurance. Key Topco stated it will be kept as a standalone go-to-market business.

The headcount across the holding company decreased slightly in 2021 to 363 from 387 in the prior year.

Injection

In April 2020 Mulsanne Insurance Company breached the Gibraltar Financial Services Commission’s Solvency Capital Requirement. This led to Sun Capital injecting £7m the same month and a further capital injection of £17.5m in December 2020 which resulted in a solvency ratio of 187% of the SCR.

The filing updated that the pre-audited solvency ratio as at 31 December 2021 was 164%.

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