2nd Feb 2024 09:39
(Alliance News) - Orchard Funding Group PLC on Friday said it expected a material adverse impact from insurers withdrawing products from the guaranteed asset protection market.
Orchard Funding shares fell 29% to 23.44 pence each on Friday morning in London.
The Luton, England-based professional fee funding provider said the withdrawals follow a conclusion of a UK Financial Conduct Authority review.
At the end of last month, the FCA told several UK insurers to stop issuing new GAP products after an investigation into the specialist market.
"GAP insurance is sold as an add-on to motor insurance, covering the difference between a vehicle's purchase price and its current market value," it said.
Over 20% of Orchard Funding's assets finance GAP insurance products, therefore the withdrawal of these insurance products is likely to have a material adverse impact on its financial results over the current financial year.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.