Boulder, Colo.-based ICAT Holdings LLC has created a new underwriting syndicate at Lloyd’s of London, designated as ICM Syndicate 4242, to support the company’s underwriting of catastrophe-exposed properties throughout the United States. ICM Syndicate 4242 will commence underwriting business on Jan. 1, 2007 and joins the more than 300-year-old market’s existing community of 66 syndicates.
“This is an exciting day for ICAT. Lloyd’s is an exceptional underwriting community that is one of the most prestigious and financially secure institutions in the world,” said Jack Graham, chief executive officer of ICAT Holdings. “Under the Lloyd’s banner, we are well positioned to serve the needs of more than 20,000 policyholders and our network of 450 independent agents and brokers.”
Syndicate 4242 has capital to support approximately $200 million of gross written premium for its 2007 business plan. Through a Lloyd’s Coverholder Agreement, ICAT Managers, LLC has binding authority to underwrite and manage the Company’s existing core business on behalf of the Syndicate. Capital has been supplied through a consortium made up of ICAT and third-party investors, including Chaucer Holdings PLC, whose managing agency subsidiary, Chaucer Syndicates, Ltd., will act as the managing agent for Syndicate 4242 to provide operations and regulatory support. Chaucer is a Lloyd’s Managing Agent with approximately 1 billion pounds Sterling under management.
“Chaucer was attracted to working with ICAT due to its reputation in the market as a disciplined specialty underwriter,” added Bob Stuchbery, the chief underwriting officer of Chaucer.
ICAT’s Gregory Butler is the active underwriter of Syndicate 4242. Butler has held several underwriting positions at ICAT and was previously deputy insurance commissioner in the California Department of Insurance and served as the founding chief executive officer of the California Earthquake Authority.
Benfield Advisory (a wholly owned subsidiary of the Benfield Group) and Clyde & Co. acted as advisors to ICAT in the transaction.
Source: ICAT Holdings LLC
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