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TAWA redundancies latest changes in UK run-off sector

UK run-off management company Tawa announced a round of redundancies within its 90 staff in London last week, fuelling sentiment that the discontinued business sector is heading towards greater consolidation and streamlining of its resources.

Tawa confirmed the redundancies had occurred, but management at the company declined to comment further.

Tawa acquired the run-off and over $2bn liabilities of CX Re (formerly CNA Re’s UK operations) in 2002 and is acquiring Continental Management Services Ltd (CMS).

The move happens against a backdrop of employee change in the run-off sector, which hints at companies both attempting to reduce cost pressures and also realigning themselves to be in shape to acquire or be acquired. 

At the beginning of the month, Vince Wooding was axed from insurance outsourcing firm, Axiom Consulting, after a strategic review decided a more commercial approach was needed to drive the business forward.

David Jennings, Axiom’s executive chairman told The Insurance Insider : “We hope to be a more commercial organisation and one that provides better service to our clients.”

He added: “We just think it’s better to find someone else to lead the company through that process.”

Wooding departed following the break down of advanced takeover talks with Capita Insurance Services at the beginning of this year. 

More recently, Peter Abbott, the managing director of Compre Administrators Ltd, confirmed he would be leaving the organisation.

UK run-off consultancy Claims Management Group Ltd (CMGL) was acquired this year for £32mn by UK outsourcing giant, Capita Insurance Services, in a move which has been heralded by some as a catalyst for further consolidation within the sector. Jerry McArthur, formerly managing director of CMGL is to head up Capita’s Commercial Insurance Services (CIS).

Also, in the pipeline is the acquisition of run-off (re)insurer, Alea Holdings Ltd by US hedge fund, Fortress Investment Group (FIN), despite resistance from a number of Alea's smaller shareholders, led by Odey Asset Management (see story 21).

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