Sidecar syndicate will reinsure Catlin

Lloyd’s insurer Catlin and China Re have teamed up to form a new special-purpose Lloyd’s ‘sidecar’  syndicate - Syndicate 2088.

The new syndicate will be managed by Catlin Underwriting Agencies and start writing in January 1 2012 with £50m of stamp capacity.

Syndicate 2088 will be a ‘sidecar’ -  it will reinsure Catlin’s existing  Syndicate 2003 on a quota-share basis. This will in turn allow Catlin to increase its premium volume in 2012 and capitalise on price rises in certain areas without needing to seek additional capital from existing shareholders.

Catlin said the new syndicate would allow China Re to diversify its underwriting portfolio by writing Lloyd’s business, which it would otherwise have limited access to.

In addition, Catlin believes the partnership with China Re will expand its knowledge of insurance and reinsurance practices in China, allowing the Lloyd’s insurer to increase its presence there.

Catlin established offices in Hong Kong in 2006 and in Shanghai in 2007, and it is currently the largest participant in Lloyd’s China, which was also established in 2007.

“This alliance will create a new Lloyd’s special purpose syndicate, which will provide reinsurance support that will allow Catlin to take greater advantage of emerging improvements in many business classes without the need to increase capital,” said Catlin chief executive Stephen Catlin in a statement. “More importantly, I believe that the Group’s partnership with China Re will lead to our increased understanding of the Chinese marketplace, which will produce significant advantages for Catlin in the years ahead.”

Dr. Li Peiyu, chairman of China Re Group, added:  “This strategic partnership will be good for both China Re and Catlin, and I trust it will lead to future of co-operation and development between us.”