Managing Agent Name: Canopius Managing Agents Limited
Subject: 2015 Year of Account
Syndicate Affected: 260
Canopius Managing Agents Limited (“CMA”) advises that Lloyd’s has agreed Syndicate 260’s 2014 Syndicate Business Plan. However, this approval is caveated as follows:
“The CPG considered carefully the long term viability of the syndicate as part of agreeing this plan which is the seventh year that the syndicate has or will have planned to be loss-making. It is not in the interests of the Society as a whole to be continuing to agree a loss-making plan for the business. We are mindful of the fact that Canopius has worked hard to improve this business since it acquired the syndicate but this has not yet resulted in a return to profit in the results which are submitted to us. We are also conscious of the expense level which a business of this size has to bear as a stand-alone entity which makes it more difficult to return the underlying business to profit. As a consequence, whilst we agree the submitted SBF for 2014, we should advise that the CPG is not currently minded to agree a further SBF for the 2015 year of account for Syndicate 260, absent evidence in the returns submitted to us between now and then of what we would consider to be a demonstrable material and sustainable improvement in performance.”
Whilst CMA will continue to strive to return this syndicate to overall profit, this caveat does raise the possibility that Syndicate 260 may not be permitted to trade in 2015.
Should 260 not trade beyond 2014, it would be Canopius’s intention to seek Lloyd’s consent to transfer the business into 4444/958 as we regard this business as an important part of our UK retail strategy/ product offering and believe it could operate more successfully within a larger syndicate. However, in the light of the CPG’s concerns expressed above, there can be no assurances that Lloyd’s consent will be forthcoming.
Agency contact name: Bradley Cass
Agency contact no: + 44 (0)20 7337 3798
For auction office use only: D2013023
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