Catlin Underwriting Agencies' Syndicate 1003 is to report a loss for the first year ever.
The forecast loss for the 2000 year of account is between -7.5% and -12.5% of capacity.
The news will co ...
Catlin Underwriting Agencies' Syndicate 1003 is to report a loss for the first year ever.
The forecast loss for the 2000 year of account is between -7.5% and -12.5% of capacity.
The news will come as a shock to investors in the syndicate as the company had predicted profits throughout the year.
The capital providers found out about the loss on 21 November when the company sent a letter notifying them.
Company chairman Stephen Catlin said the realisation of the loss followed the latest Syndicate Quarterly Returns (SQRs) coming out last week.
He said the company recognised that it had an unprecedented deterioration, specifically in the professional indemnity (PI) account. But he stressed Catlin only had a small market share in PI.
He said events like the deterioration of WorldCom and Enron as contributing factors and said the company had come to the conclusion it was necessary to strengthen reserves.
Catlin said: "I regret that we have had to post a loss for the first time ever."
