Lloyd’s, FSA Approve Pembroke Managing Agency for Quanta

Bermuda-based Quanta Capital Holdings Ltd. announced that it has entered into definitive agreements with Chaucer Holdings PLC, the specialty Lloyd’s insurer, and the senior underwriting team of Syndicate 4000, forming a joint venture called Pembroke JV Limited, which will own Pembroke Managing Agency Limited.

The arrangement has now received approvals from Lloyd’s and the FSA to manage Syndicate 4000.

Quanta suffered a serious financial crisis after the hurricanes of 2004-05. It has placed the bulk of its business into run-off, and sold its Environmental Strategies Consulting LLC operation to WSP Environmental Holdings, Inc., a division of the U.K.-based management and consulting firm WSP Group plc. (See IJ web site Sept. 19, 2006).

The deal with Chaucer was first announced last June (See IJ web site June 9, 2006). Pembroke was formally established in October (See IJ web site Oct. 26, 2006).

“Quanta’s capital remains committed to Syndicate 4000 for underwriting years 2007 through 2009, said the bulletin. “Additionally, Chaucer and Quanta will work closely together to continue to diversify the provision of capital to the Syndicate to support its presence and profitable growth in the Lloyd’s market. Chaucer has agreed to provide the capital to support 10 percent of the Syndicate’s underwriting in 2007 and to support underwriting in 2008 and 2009.”

James J. Ritchie, Quanta’s executive chairman, commented: “This is a critical step towards solidifying Pembroke as a managing agency. It reiterates our commitment to providing Syndicate 4000 and its team of underwriters with the financial resources it needed to maintain a competitive presence in the Lloyd’s market. We believe that the start of diversification of the capital base and added technical support from Chaucer will strengthen the Syndicate’s growth platform, and today’s announcement is a step forward in Quanta’s continued capital preservation efforts.”

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