New unit expects to write $65m of premium in first year

Bermuda-based insurer Ironshore has received approval in principle to set up a new Lloyd’s syndicate.

The syndicate will be numbered 2014 and named Acappella Syndicate. It will be managed by Ironshore’s Lloyd’s managing agency Pembroke, which already runs Syndicate 4000.

The new syndicate will start writing business in the 2014 underwriting year and is targeting $65m (£40m) of premium income in its first year.

Former Hiscox underwriter David Bruce will be the new operation’s active underwriter. He will be assisted by Tony Bruce, who will oversee the property reinsurance division.

Jim Quinn will join the syndicate in December 2013 as head of the new casualty reinsurance team. Mark Johnson will be appointed to the Pembroke board of directors, subject to Lloyd’s and Prudential Regulatory Authority approval. He will be responsible for third-party capital and development of third-party business for the agency.

Permission for the syndicate to underwrite will be determined once Lloyd’s has completed its review of Pembroke’s arrangements to manage the syndicate and formally agree upon the syndicate business plan and capital requirements.

Pembroke managing director Justin Wash said: “This is a significant step toward Pembroke developing its third-party business, while leveraging Ironshore’s distribution network to bring new business into the Lloyd’s market that is supported by private investors.

“We have a strong appetite to grow the third-party business and actively engage with other potential investors, providing distinctive distribution benefits to the Lloyd’s market.”

He added that the syndicate would “build upon Pembroke’s robust risk management platform, backed by IronServe’s outsource capabilities, allowing us to extend competitively priced and scalable services”.

Syndicate conversion

Acappella Syndicate 2014 will be a conversion of Pembroke’s existing special-purpose syndicate, 6110, into a stand-alone syndicate.

Ironshore said it is the first special-purpose syndicate to undergo this conversion process.

Syndicate 6110 previously sourced all of its business through a quota-share agreement with Pembroke’s existing Lloyd’s unit, Syndicate 4000.