Argenta Private Capital, the Lloyd’s members’ agent, is to provide £20m capital to Ark Syndicate 4020 – the first time private capital has accessed a totally corporate syndicate.
The deal, subject to members’ approval, will see Argenta entering into a quota share agreement with Ark for the 2008 year of business.
Argenta raised the £20m capital from around 400 investors in just over two weeks.
It also recently tied up a deal with Hiscox, which will see it provide quota share capacity to a new syndicate replacing the Panther Re sidecar.
Andrew Colcomb, a director at Argenta Insurance Research, said: “From Ark’s perspective, what I think they like about private capital is that it is well informed and able to take a long term view.
“This is the first time that a previously 100% corporate syndicate has invited traditional members to participate. To spread your capital base makes sense.
Colcomb estimated that Argenta Private Capital would be placing around £1bn of capacity on behalf of its members for 2008, spread across 34 Syndicates.
The members’ agent already has quota share agreements in place with Catlin and Map.