Managing Agent Name: ASTA MANAGING AGENCY LTD
Subject: 2015 BUSINESS PLAN
Syndicate Affected: SYNDICATE 2526
Syndicate 2526 submitted a 2015 plan to Lloyd’s in July. In relation to the submission, Lloyd’s has advised that:
The CPG discussed the future of this syndicate in considerable detail. In particular, the CPG noted, inter alia, ‘the exit of the Active Underwriter in January, the discussions with the current Active Underwriter and line underwriter for MedMal, the loss of the PA underwriter and the current status of discussions with the members’ agents and other third-party capital providers’. The CPG also noted that ‘AmTrust, the majority capital provider, has indicated its support for the Syndicate should other capital providers seek to leave, and that it would be seeking to acquire additional capacity through the auction process and/or bilateral deals for the 2015 year of account. Depending on the outcome of these endeavours, AmTrust will consider the future of the Syndicate post 2015, one of the possible options being a potential merger with another AmTrust-backed syndicate’.
Lloyd’s CPG is ‘minded to approve an SBF submitted in September on the same basis as the July submission’. However, the approval is caveated as follows:
‘Taking account of all these matters, the CPG would be minded to approve an SBF submitted in September on the same basis as the July submission to allow for future dialogue between the stakeholders regarding the capital support for the Syndicate for 2015 and its strategic direction. Additionally, Lloyd’s has asked for further information relating to the 2015-plan loss ratios for the Medical Malpractice and Financial Institution accounts before they allow them to be reduced to the amounts shown in the plan.
‘However, in considering the September submission, the CPG will need to be satisfied that the Syndicate has the relevant underwriting capabilities in place so that it can execute the proposed plan in 2015.’
The plan was submitted in the knowledge that:
- The current Active Underwriter has highlighted his desire to stand down from the role of Active to concentrate on his class-underwriter role for the Professional Indemnity account.
- The Active Underwriter is fully supportive of the submitted plan and will continue in his role as Active Underwriter until a suitable alternative is found.
- Currently, the Medical Malpractice account is written directly into the Syndicate. These arrangements may change during the course of 2015, with the account being introduced by way of a coverholder arrangement. The coverholder could be led by the current Deputy Active Underwriter of the Syndicate.
The July SBF included £5m of Extended Warranty business; this will not be included in the September submission.
Asta Managing Agency Ltd and AmTrust have agreed they intend to apply to Lloyd’s for approval to transfer the management of Syndicate 2526 to AmTrust at Lloyd’s. If approved, the transfer would not occur before 1 April 2015.
Until the capital structure of the Syndicate is confirmed, neither Asta nor AmTrust can speculate on the numerous options regarding the future of the Syndicate post 2015.
Date issued: 26 August 2014
Agency contact name: Simon Norton
Agency contact no: +44 (0)20 7743 0900
For auction office use only: D2014001
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