The year 2000 has been a good year for the Pye syndicate 962, which this week announced an increase in capacity of £34m for 2001, double the previous capacity.
In addition, the written income for 2000 is in excess of £15m, which compares with a modest £3m for 1999.
David Pye, active underwriter for the company, points to a risk-averse approach from the composite insurers, coupled with 962's own claims service procedures as the key drivers behind the strong performance.
He said: "We have received outstanding support from brokers. By any standards, a growth of 500% is dramatic. Brokers in London in particular have recognised that Pye 962 offers them a viable alternative market for UK business as opposed to the increasingly risk-averse composite insurers.
"The one message we are getting from brokers is that they have traditionally gone to the composite insurers. The name of CGNU kept cropping up as a company that does not value the broker support it has had over the years."
The company's eyes are firmly fixed on developing business levels outside the London area in 2001.
As Pye explains: "In the New Year we will be promoting our message to the many commercial brokers located outside London, that are increasingly disenchanted with the composite market."
Pye has already established an underwriting room in Harrogate and is looking to set up a similar operation in the south east of England.
Pye adds: "Our individual approach to each risk, combined with excellent claims service and first class security has enabled us to win business.
"In terms of claims service, we are a much leaner organisation and are able to process claims very efficiently. For example, we recently negotiated a settlement on a £1m-plus claim within six weeks.
"Our strength is paying personal attention to larger claims. The majority of new business has come from the company market."
Pye 962 was relaunched in January under the stewardship of David Pye, who had previously been managing director at London & Edinburgh – ironically a composite.
Before the relaunch, the business was pure liability only and was under the control of underwriter Andy Vine.
The bulk of Pye's underwriting team were recruited from London & Edinburgh.
