QBE Europe’s surprise announcement that it was no longer providing bonds over £1.5m allegedly sent a shock wave through the construction industry, or did it really?
QBE attribute the decision to increased volatility within the industry driven by Brexit, the pandemic and political unrest that has disrupted supply chains. Over the past 2 years or so, on average, a construction company goes into administration every week, including some big players such as Buckingham, Henry and Readie, leaving insurers to pick up the pieces.
A spokesperson for QBE Europe said: “Following a review, we have decided to cease writing new construction-bond business from our London office.”
“This decision does not impact in any way our construction bond MGA for SMEs.”
“As always, we will continue to monitor developments in the sector and periodically review our market position.”
Nationwide Sureties Ltd, a specialist Bond provider and a major supplier of construction bonds for the UK Construction Industry responded to the news and wanted to reassure everyone that it is business as usual.
A spokesperson said: “Although this news was surprising, Nationwide Sureties Ltd will continue to provide a full range of Construction Guarantee Bonds including Performance, Advance Payment, Retention Bonds, Section Agreements for Roads, Sewers, HMRC, Environment Agency and many more, along with all other forms of Construction Bonds.”
“Since 1999, Nationwide Sureties has provided well over £600 million worth of bonds and guarantees and can see no reason why QBE Europe’s decision will have any effect on our ability to place your business. We will utilise every avenue available to us that we have nurtured over the course of our 25 years in the surety market to ensure that all our Contractors and Sub-Contractors have capacity available to them for their Bonding needs”
“We have clients ranging from small independent businesses through to major blue-chip companies who have all successfully relied on our expertise in finding the right solution for each requirement.”
“Over the past 25 years, Nationwide Sureties Ltd has steadily grown, experienced all the ups and downs of the markets through the financial crashes and unprecedented inflation, Covid, Brexit and many of the other financial fluctuations, to become a major provider of bonds within the industry, and that growth will continue for many years to come. We will continue to support our 1000 plus clients and welcome any new ones with our one-on-one personal service.”
If you wish to discuss with Nationwide Sureties Ltd, please contact them through their website www.nationwidesureties.co.uk, by telephone on 0151 931 5599 or by email at nationwidesureties@gmail.com.
