Quanta Capital Holdings Ltd. announced that its Lloyd’s business has taken a step forward in the formation of the Pembroke Managing Agency Limited with the signing of “definitive documents with Chaucer Holdings PLC, the specialty Lloyd’s insurer, and the senior underwriting team of Syndicate 4000, for the formation of Pembroke.”
As previously disclosed (See IJ Website June 9), Pembroke will be a joint venture among Quanta, Chaucer and the Syndicate 4000 underwriting team and will serve as the new managing agency for Syndicate 4000. “The transaction is expected to close following the receipt of required Lloyd’s and FSA regulatory approvals,” said the bulletin.
Quanta suffered a serious financial crisis after the hurricanes of 2004-05. It has placed the bulk of its business into run-off, and recently 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 Website Sept. 19).
Quanta also noted: “Under the terms of the agreements, Quanta’s capital remains committed to Syndicate 4000 for underwriting years 2007 through 2009. Additionally, Chaucer and Quanta plan to work together closely 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, Executive Chairman of Quanta, commented: “We are committed to the financial success of Syndicate 4000, and the Pembroke structure is designed to provide the Syndicate and its strong team of underwriters the necessary support it needs to maintain a long-term presence in the Lloyd’s market. Establishing Pembroke will support the preservation of the capital Quanta has committed to the Lloyd’s platform, and advances the capital diversity and independence of Syndicate 4000.”
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