Capital Departure Forces Syndicate

Closure Marlborough Underwriting Agency syndicate 744 is shutting its doors following Monday’s announcement that multi-line insurer CGNU, which backed 80 percent of the syndicate’s capacity, would withdraw from the syndicate in 2001.

The 744, a marine excess syndicate, will accept no new business in 2001and will be put into runoff. It is among the 19 syndicates Lloyd’s ordered to increase capital base by as much as 20 percent in order to underwrite in 2001. No decision has been made on the future of the syndicate’s underwriting or back-office personnel. Marlborough’s syndicate 1242, the property and casualty syndicate, went into runoff in May due to poor market conditions.