The Central Bank has ordered specialist construction industry insurer CBL Insurance Europe to stop writing new business with immediate effect.
All existing policies remain in force, however, and the business will continue as a going concern.
CBLIE is the Dublin based-subsidiary of CBL, a New Zealand-based specialist insurance company. It has been directed by the New Zealand financial regulator to raise more capital.
CBLIE uses Dublin as a base to sell policies in Belgium, Denmark, France, Italy, Norway, Romania, Spain, Sweden and Britain.
It is understood that most of its non-Irish business is in the UK and France. Last week, the firm voluntarily stopped writing new business in the French market.
In a statement this afternoon, the Central Bank of Ireland said it had today "issued a direction to CBLIE instructing it to cease writing business with immediate effect, until further notice.
"CBLIE continues to operate and existing policies continue to remain in force.
"The Central Bank has required CBLIE to write to all appointed insurance brokers and distribution partners to inform them of the direction. The Central Bank has also requested that all appointed brokers and distribution partners, with which CBLIE is connected, inform policyholders. Any existing CBLIE policyholders who have concerns about their policy should contact the firm directly, or their broker."
The Central Bank has also published a list of Questions and Answers in relation to its announcement.
CBLIE underwrites construction-related credit and financial surety insurance, professional indemnity insurance, property insurance, and travel bonding.
At the start of the month CBL asked for a halt in the trading of its shares ahead of its full year results.
It subsequently reported a loss of NZ$75m-85m (€44.6m-50.5m), which it blamed on an increase in the future claims reserve, and a write-off of receivables, at its French business.
