Managing Agent Name: EQUITY SYNDICATE MANAGEMENT LIMITED
Subject: IAG Strategic Review
Syndicate(s) Affected: 218
On 17 May 2012, Insurance Australia Group Limited (“IAG”) announced that it was undertaking a strategic review of its United Kingdom business. IAG is the ultimate parent undertaking of:
- Equity Syndicate Management Limited (“ESML”), the Managing Agent of Syndicate 218; and
- Equity Red Star Limited, the Lloyd’s Corporate Member that provides 64.9% of Syndicate 218’s underwriting capacity for the 2012 year of account.
IAG advised that it was assessing a number of options, including but not limited to:
- a continuing focus on improving the business’ performance within the current operating model;
- refining the business’ strategy to a more focused specialist motor offering; and
- exploring options for a potential sale of all or part of the business.
On 23 August 2012, IAG further announced that its strategic review was continuing and was expected to be completed before the end of the 2012 calendar year. All options continue to be assessed.
The 2013 Syndicate Business Forecast (“SBF”) has been prepared by the Managing Agent on the basis that Syndicate 218 will continue to be operated in accordance with the Managing Agent’s current strategy for the Syndicate. It is possible, however, that following the completion of IAG’s strategic review process; the Managing Agent may propose for Lloyd's approval a business plan for the Syndicate that could entail material changes to the data and information contained in the 2013 SBF Return. The Board of ESML remains focused on managing the Syndicate in the best interest of all Names.
Date issued: 13th September 2012.
Agency contact name: Peter Merrett
Agency contact no: + 44 (0)1277 206589
For auction office use only: D2012002