Chaucer buys additional 2005 capacity

Chaucer has completed a bilateral agreement with GE Frankona Capital to purchase its entire £51m underwriting interest on Syndicate 1084's 2005 year for 5.1p per £1.

In the first Lloyd's auction, Chaucer also purchased additional 2005 capacity of £700,000 on Syndicate 1084 for 5.1p and £1.1m on Syndicate 1176 for 3.3p.

The total cost to Chaucer of these capacity purchases is approximately £2.7m.

As a result of the deal, Chaucer's ownership of Syndicate 1084 will increase to approximately 98% (economic interest 90%) for the 2005 year of account.

Chaucer has not made a general offer for Syndicate 1084 this year and will not therefore be attempting a minority buy-out.

At present, the 2005 capacity of Syndicate 1084 remains unchanged at £400m. But Chaucer said that after completion of its business planning process, it was possible that this may be reduced by approximately £25m.

Chaucer's ownership of Syndicate 1176 increases to 51%. The Syndicate intends to increase its capacity to £18m for the 2005 year of account.