INA UK set to write property and professional risks
ACE is set to launch a commercial lines insurance company in the UK that could write up to £280m of business next year.
ACE active underwriter Andrew Kendrick said: "ACE has asked the FSA to re-authorise INA UK to accept business from 1 January 2003."
INA is part of the Cigna property and casualty business, which ACE acquired in January 1999. It is understood that INA UK would receive a rating of A+, if successful.
Funding for the new underwriting vehicle would come from the cash freed up from Lloyd's by ACE Global Markets. In September, ACE told Lloyd's that it was reducing its capacity written at Lloyd's from the 2002 figure of £900m to £752m.
ACE Europe is registered in Belgium and already writes over £450m into the UK market through its eight branch offices. This is just less than half its business. It said that it would look to boost net written premiums by 50% in 2003.
If INA is approved by the FSA, it is understood that it would mainly underwrite UK property and professional risks, including directors' and officers', professional indemnity and financial institutions risks.
ACE active underwriter Andy Kendrick said: "This is a commitment to the UK insurance environment. We want to be regulated by the FSA, because it is a strong, robust regulator. If you want to trade in London why wouldn't you want to be regulated by the FSA? It can be expensive, but this is about demonstrating commitment."
Kendrick added that ACE would be interested in most sizes of risk in the lines which it would be writing as long as they were good risks.