First time that a Chinese-owned company has established a Lloyd’s syndicate
China’s largest reinsurer has gained permission for Syndicate 2088 to be a standalone reinsurance entity to be managed by Catlin Underwriting Agencies from 1 January.
The China Re syndicate, which is projected to underwrite about £120m in premiums in 2015, marks the first time that a Chinese-owned company has established a Lloyd’s syndicate writing open market business.
Initially, the open market segment of the portfolio will focus on property, marine and specialty treaty reinsurance business, some of which is written by China Re and which includes Chinese risks.
China Re chairman Dr Li Peiyu said: “I am pleased to announce that China Re’s application to transform Syndicate 2088 has received final approval from Lloyd’s and that the syndicate is ready to underwrite business incepting from 1 January 2015. We at China Re are grateful to Lloyd’s for their consideration of our application.
“The new stand-alone China Re Syndicate will further raise awareness of the China Re brand in the Lloyd’s market. Our long-term strategy is to increase our activities in the international markets, and we look forward to working with international clients and their brokers placing business in the Lloyd’s market.
“China Re and Catlin formed a strategic partnership three years ago that has been mutually beneficial, and the establishment of the China Re Syndicate at Lloyd’s takes that partnership to a new level. In the future, China Re plans to establish its own Lloyd’s managing agent company, so as to fully integrate ourselves into the Lloyd’s market.”
Catlin chief executive Stephen Catlin said: “I am delighted that China Re has received permission to establish a Lloyd’s syndicate that will write open market business and that China Re has chosen Catlin to manage the syndicate from its outset.
“The syndicate further underscores Lloyd’s position as a leading market for international insurance and reinsurance business. We at Catlin look forward to continuing to work with China Re in the coming years to help build Syndicate 2088’s business portfolio.”
Syndicate 2088 will write a diversified portfolio, both by class of business and by geographic region.
A significant proportion will represent new business to the Lloyd’s market. Initially, the open market segment of the portfolio will focus on Property, Marine and Specialty Treaty Reinsurance business, some of which is currently written by China Re and includes Chinese risks.