MMI specialised in insurance for local authorities but was also involved in motor and household insurance. Gradually, new underwriters have been found to take on the old MMI business.
Cornhill took over 90,000 AA motor policies. MMI shared underwriting on 250,000 AA Homesure policies. Many of these have now been renewed under different contracts but Eagle Star is taking on MMI's underwriting for the remaining 40,000, due for renewal at the end of this year. MMI previously provided 25 per cent of the cover and Eagle Star 25 per cent with the remainder coming from a variety of other companies.
The AA says there was never any question of risk to policyholders since, if MMI had been unable to meet claims, it would have picked up the bill for anything unpaid under the Policyholders' Protection Act compensation scheme.Reuse content