Motor, marine and non-marine to operate separately within £400m uniT
Lloyd's insurer Chaucer Holdings is to merge its syndicates 587, 1084 and 1096.
A 45-page document outlining the merger will be sent to the syndicates' capital providers on 9 June.
The merger of the three syndicates will be finalised at an EGM on the 10 July.
Under the terms of the merger, motor Syndicate 587 (2003 capacity £96m) and non-marine Syndicate 1096 (£160m) will be "folded into" marine Syndicate 1084 (£102m).
The enlarged syndicate 1084 will have a total capacity of £400m.
Chaucer underwriting director Bob Stuchbery said: "Motor, non-marine and marine will operate as three distinct units within syndicate 1084."
Stuchbery denied suggestions that the merger was the result of pressure on Chaucer, from the Lloyd's franchise board, to streamline its business plan.
"The consolidation will improve the internal allocation of capital during the course of an underwriting year," said Stuchbery.
"Another reason is that it will assist us when purchasing reinsurance."
Chaucer's nuclear property and liability Syndicate 1176 will not be affected by the merger.
Chaucer syndicates recently reaffirmed their forecasts for the 2002 year of account.
Syndicate 587 is forecast to generate between 7.5% and 15% profit from £90m of capacity.
Syndicate 1084 is forecast to return a profit of between 5% and 12.5% on £82.2m of capacity.
Syndicate 1096 is forecast to generate a profit of between 10% and 17.5% on £148.4m of capacity.
Earlier this year, Chaucer Holdings raised £42m after all the new shares made available under its placing and open offer were taken up by investors.
