Steadfast-owned National Credit Insurance (Brokers) has taken over administration of JLT’s credit insurance division.

JLT describes the move as an “alliance” or “joint venture”, and MD Specialty Andrew Barrowman told insuranceNEWS.com.au that contrary to market rumours NCI has not acquired the division.

“We haven’t sold the book,” he said, but he declined to reveal details of the transaction.

“It no longer made financial sense for us to run the credit insurance division,” Mr Barrowman said.

“We reviewed it and came to the conclusion we could provide a better level of service to our clients through NCI – and the reality is that they remain our clients.

“We will work closely with NCI and continue to grow the portfolio and we will be doing it jointly in the name of JLT/NCI.”

Two of the four-person JLT credit insurance team were made redundant and two were offered positions with NCI. One declined to move and resigned; the other has yet to decide.

Mr Barrowman agrees the new arrangement could be described as outsourcing.

“NCI will provide the back office and service support for that product. It does the underwriting and the placements, it issues the documents and manages the claims, but we still service the client overall and will be sharing in the profitability of the accounts going forward.”

NCI MD Kirk Cheesman did not respond to insuranceNEWS.com.au requests for comment.