ArgoGlobal, the Lloyd’s insurer and member of Argo Group, announced plans to exit Syndicate 1200’s underwriting operations in Asia and most of its hull underwriting business within the syndicate. All existing policies remain valid and the company will manage claims handling through its London operation.
“Over the past two years, we’ve taken deliberate steps to improve profitability in Syndicate 1200 and ultimately enhance shareholder value,” said Matt Harris, group head of international operations.
“We’re executing this through underwriting actions, increased rates and a focus on digital technology to improve underwriting margins,” he said, noting that Syndicate 1200’s Asia business recently recorded combined ratios, which are unsustainable. “[W]hilst we still see growth opportunities in the region, we need to prioritize our efforts on profitable growth in other markets.”
The Asia business accounted for less than 3% of Syndicate 1200 gross written premium in 2018.
The company also announced plans to exit most of its hull underwriting business within Syndicate 1200 because its recently recorded combined ratios are unsustainable.
“This is another step in our overall drive to increase profitability,” said Harris. “It is important to note, however, we are fully committed to the remaining marine classes we insure and insuring hull on non-Lloyd’s platforms.”
Syndicate 1200 hull underwriting represented less than 3% of gross written premium in 2018. The company will, however, consider writing certain hull risks on a limited basis through Syndicate 1200 from Dubai.
These announcements have no impact on Argo Group’s Ariel Re Syndicate 1910 business, including its growing Hong Kong-based renewable energy business.
ArgoGlobal is the trading brand of Syndicate 1200 at Lloyd’s, managed by Argo Managing Agency Ltd. The Syndicate offers worldwide property, marine, energy, specialty and non-U.S. liability insurance.
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