Lloyd's integrated vehicle Advent Capital has decided that its £79m aviation reinsurance syndicate will not trade for the 2001 year of account.
The decision follows a review by Advent, which this week has completed its planned acquisition of Kingsmead Underwriting Agency and Heraldglen, its corporate capital provider.
Advent said it was considering syndicate 271's future and might retain part of the business which has a capacity of £79.8m, within one of its other managed syndicates.
Keith Thompson, chief operating officer of Advent, said: “We do not view aviation as a business that dovetails with our marine and non-marine interests.”
Aviation syndicate 271 is one of three syndicates managed by Kingsmead with a total capacity of £216m, that have been acquired by Advent.
Syndicate 2, (marine and excess of loss) and syndicate 506, (non-marine) join Advent's £85m capacity non-marine syndicate 780.
Advent said BF Caudle, its managing agency for syndicate 780, and Kingsmead would operate separately for the 2001 year of account. Their joint underwriting capacity will be £250m.
In tandem with Advent's acquisition of Kingsmead, its sole shareholder Fairfax Financial Holdings, a Canadian property and casualty insurer, will make £110m available to support Advent's underwriting funds at Lloyd's between 2001 and 2005.
