Close Brothers Rejigs Insurance Premium Unit to Boost Returns

Close Brothers Group Plc, one of the lenders most stung by the UK’s ongoing motor finance scandal, said it will revamp its premium finance business as part of its plans to boost returns.

The company will now focus on commercial lines insurance premium finance, a product that allows businesses to pay their insurance premiums in installments over time, according to a statement on Wednesday. As part of the shift, the company said it is cutting ties with certain brokers that predominantly offer personal lines insurance premium finance, or loans for consumers’ motor and home insurance premiums.