Lumley Insurance will write only limited new business for its rural products during the next few months because it is reviewing the business.

But CEO John Nagle told insuranceNEWS.com.au renewals will not be affected, and “Lumley remains committed to its rural clients”.

There has been speculation that losses on Lumley’s rural business have exceeded premium income, and Mr Nagle confirmed there have been problems.

“Elements of this portfolio have not been performing in line with expectations and we don’t believe our risk selection criteria is performing as it should,” he said.

“Therefore this review is necessary to ensure that Lumley continues to offer a sustainable rural product that meets its clients’ requirements and expectations while being profitable.”

Mr Nagle says recent moves by the WA Farmers Federation to boycott Wesfarmers’ rural insurance products did not have any impact on the decision to review the business.

The review is being undertaken during the next few months because this is a low period for new rural business.

“We expect Lumley’s revamped rural offering should be available after September,” he said.