Managing Agent Name: Beazley Furlonge Ltd
Subject: 2015 Business Plan Capacity
Syndicate(s) Affected: 623/2623
The managing agent has been in discussions with a third party reinsurer with a view to establishing a special purpose syndicate which will provide reinsurance to both Syndicates 623 and 2623 for the 2015 year of account on a whole account quota share basis. The special purpose syndicate would operate in parallel to Syndicates 623 and 2623. The arrangements would also contemplate the third party reinsurer ceding business to Syndicates 623 and 2623, with aggregate premium level corresponding to the level of premium being ceded to the special purpose syndicate by Syndicates 623 and 2623.
The effect will be that the net premium income of Syndicate 623 remains broadly neutral. It is not certain whether this transaction will take place and no decision has been made by the managing agent or the third party reinsurer. This disclosure is being made to explain why the capacity for the 2015 year of account as shown in syndicate 623's approved business plan exceeds the amount indicated in the disseminated syndicate business forecast – this is due to the additional premium income that would be expected to arise from the transaction with the third party reinsurer if the managing agent were to enter into it.
Date issued: 7 November 2014
Agency contact name: Martin Bride
Agency contact no: + 44 (0) 207 674 7291
For auction office use only: D2014023
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