The Lloyd's Franchise Board has approved the 2004 business plans for Chauncer syndicates 1084 and 1176.
The Group is forecasting gross premium incomes for 2004 of £374m for syndicate 1084 and £14m for syndicate 1176, on capacities of £400m and £15m respectively.
GE Frankona has agreed to forego its current entitlement, as a shareholder, to an economic interest in Chaucer Dedicated Limited's underwriting for 2004. Chaucer has
agreed, in principle, to pay GE Frankona 11p per £1 of capacity of syndicate 1084 for this forgone interest. This will increase the Group's underwriting interest by £11m for 2004.
This transaction, in addition to Chaucer's acquisition of capacity totalling £31m on syndicate 1084 from individual Names this year, will increase the Group's underwriting interests to £317m for 2004, a rise of £51m or 19% on 2003.
The Group has not, however, succeeded in its application to complete the £9m capacity minority buy-out on syndicate 1084.
