Auction Newsletter No 8
Transactions permitted in the fourth auction under Auction Rule 4
Transactions generally permitted
Following the approval by Lloyd’s during October 2015 of the relevant unaligned syndicate business plans for 2016, it has been determined that transactions will be permitted in the fourth auction to be held on 11 and 12 November 2015 in capacity on the following syndicates:
Tokio Marine Kiln Syndicates Limited – 510
Argo Managing Agency Limited – 1200
AmTrust at Lloyd’s Limited – 2526
ANV Syndicates Limited – 5820
In the case of syndicate 1200 the capacity of the syndicate for the 2016 year of account, as shown in the syndicate’s approved business plan, exceeds the amount indicated in the syndicate’s business forecast pursuant to paragraph 4(3)(a) of the Auction Rules 2015.
In the case of syndicates 1200 and 5820 the syndicate business plan approved by Lloyd’s contained material changes, as defined in paragraph 4(4)(b)(v) of the Auction Rules 2015, from the equivalent information communicated to members’ agents and direct corporate members on or before 15 September 2015.
In the case of syndicate 510 the syndicate business plan approved by Lloyd’s contained material changes, as defined in paragraph 4(4)(b)(i) of the Auction Rules 2015, from the equivalent information communicated to members’ agents and direct corporate members on or before 15 September 2015.
It has been agreed by the Auction Official that transactions will be permitted in the fourth auction in capacity on syndicate 2526.
Tender and Subscription Orders
Members and prospective members of the above syndicates are permitted to tender any or all of their capacity on those syndicates in the fourth auction.
Auction Rules 7(4)(b) and (c) generally prohibit members from tendering and subscribing for capacity on the same syndicate in the same year. In the context of any proposed transaction for permitted syndicates in the fourth auction, members, their advisers and issuers are reminded that such prohibition will not apply.
The deadline for disclosures for the fourth auction is midday on Monday 9 November. The managing agent of each syndicate included in the above list is expected to give very careful consideration as to whether it is appropriate to issue a disclosure to set out the reasons for their participation in the fourth auction.
Head of Legal & Compliance and Auction Official
02 November 2015
Telephone: +44 (0)20 7327 6170