Lloyd’s announced that three new syndicates have started trading adding £236 million ($355 million) to its underwriting capacity which now totals £11.06 billion ($16.6 billion), 10 percent over year 2000 capacity, and the largest increase since 1993-94.
The three new syndicates and their capitalization are: #2791 – Managing General Partners Underwriting Ltd. ($209.5 million); #2010 – Cathedral Underwriting Ltd. ($121.5 million), and #2607 – Creechurch Underwriting Ltd. ($23.4 million).
Managing General is probably the largest new syndicate in Lloyd’s history. It expects to write 55 percent of its business in the U.S. “across a wide range of property, casualty, liability and other risks.”
Cathedral will concentrate on “North American reinsurance business, split almost equally between aviation and property catastrophe business.”
Creechurch is a new venture similar in form to its sister syndicate #1607. The two together represent “the only specialist accident and health underwriting business within the Lloyd’s market.”
Julian James, Lloyd’s director of worldwide markets, characterized the new syndicates as innovative and “market minded.” He also noted that a number of existing syndicates, both large and small, were planning on increasing their capacity this year.
James forecast growth and a good year, stating, “In common with the rest of the global property and casualty industry, Lloyd’s has experienced poor underwriting results forecast for current underwriting years. But these strong signs of growth and expansion demonstrate that the world’s most innovative insurance market is well poised to take advantage of the opportunities that 2001 will bring. I expect to see Lloyd’s as a stronger player than ever in the U.S. market this year.”
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