Chaucer Holdings has launched a new company to manage consortium arrangements in both Lloyd's and the company market.

Chaucer Consortium Underwriting will start operating in the 2001 year of account and is expected to manage approximately $40m (£29m) of premium income.

CCUL will be 51% owned by Chaucer, with the balance being held by CCUL management. CCUL will receive a commercial fee for providing underwriting and management services to its consortium.

Chaucer Underwriting director Bob Stuchbery said the consortia approach was increasingly being used as an alternative to the “subscription” market, where risks are initially covered by lead Lloyd's underwriters before others subscribe.

“Consortium members are able to gain immediate access to profitable streams of business in a rising market without the need to recruit dedicated underwriters,” he said.