Capita has made an aggress-ive move to strengthen its position in the Lloyd’s and London markets with the formation of a syndicate.
The Lloyd’s syndicate, backed by CarVal Investors, has been established by CMGL Syndicate Management, a Capita Group subsidiary company.
Syndicate 5500 will write the reinsurance to close (RITC) of Duncanson & Holt Syndicate Management’s (DHSM) Syndicate 55. Capita CMGL will provide run-off and administrative services to the syndicate.
Jerry McArthur, managing director of Capita CMGL, said: “This is an exciting step for Capita CMGL and the first transaction of its kind. We are pleased to be working with Lloyd’s to help provide long term solutions to open year situations.
“We will continue to actively pursue opportunities to provide finality solutions to both Lloyd’s syndicates and companies.”
Joe Foley, chairman of DHSM, added: “This provides finality for the names of Syndicate 55 [which special-ised in property, fine arts, contingency and non-US liabilities].
“We are delighted to be working with Capita CMGL to ensure an orderly closure for the members supporting this syndicate.”
Leinster Lloydâ€™s bid fails
Leinster Syndicate 4882 has failed in its bid to gain the necessary Lloydâ€™s approval.
According to a senior Lloydâ€™s source, the syndicateâ€™s revised plan, which included RITC as an integral part of its business model, was refused in the July applications. The syndicate postponed its submission in April.
â€œThey have gone away to re-do their business plan and are expected to try again on 1 January,â€ the source added.
The proposed mid-year start-up syndicate was due to have an initial capacity of Â£180m, rising to Â£254m in 2008. Leinster was unavailable to comment.