As at 31 December 2008, there were 51 managing agents at Lloyd’s. A managing agent is a company set up to manage one or more syndicates on behalf of the members who are the providers of capital. The managing agent employs the underwriters and handles the day-to-day running of the syndicate’s infrastructure and operations. Many syndicates are now managed and funded by a single corporate group, integrating the management and capital provision.
In a ‘dedicated’ model, the syndicate is supported by a single capital provider, ownership of which is not connected to ownership of the managing agent. For other syndicates, the capital is provided by a ‘spread’ of different members, who may include both private individuals and corporate groups, and the managing agent may be separately owned and managed.
