RSA have announced plans to scrap its ‘Excelerator’ brand and exit the Motor Trade Business.
Agreeing in principal to sell off the Fife Group, which is home to Roadrunner Motor Trade, Motor Trade Solutions and Monthly Motor Trade brands, this will be sold to Aston Scott Risk Management and is due to be completed by January 2013.
RSA have said that it will stop writing new businesses with immediate effect. Existing customers will not be able to renew any policies starting November 1st. This will effect more than 2300 policies.
The following statement was made by Jon Hancock, RSA managing director for UK Commercial:
”Following several years of extremely tough market conditions and poor results within our motor business, we have taken the decision to exit the UK mid-market motor trade business and to sell our Fyfe business.
“We have stopped writing new business in this area with immediate effect, and current customers will be unable to renew their motor trade policy with us as of 1 November 2012.
“We are working with affected brokers and customers to help them find the right solutions for the business they are looking to place, and ensure a smooth policy transition.
“The sale of our Fyfe business has been agreed in principle with Aston Scott Risk Management and we expect the deal to complete in January next year. We do not expect this to have any impact on our customers and brokers.
“These decisions reflect our commitment to be more targeted in motor, driving rate and reducing capacity where we cannot see profitable returns and ensuring we’re best placed to deliver value and service to our customers and broker partners.”