State Farm made another big investment in the reinsurance market, when it agreed to provide an additional £100 Million ($142.5 million) in capital to Lloyd’s Amlin syndicate in which it is a major shareholder.
The commitment follows an agreement with RenaissanceRe to establish a new property catastrophe reinsurer, Da Vinci Re, with initial capitalization of $500 Million. (See IJ Website Oct. 10).
Amlin, which anticipates losses from the WTC disaster of around £60 million ($85.5 million) controls 70 percent of syndicate 2001, which also includes the former syndicate 1141. The infusion of capital by State Farm will enable it to meet its underwriting commitments for the year 2002, when the syndicate plans to increase capacity by 39 percent to £800 million ($1.14 billion).
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