Cox Insurance Holdings announced today that Cox Syndicate Management Limited has recommended to Names of Syndicate 218 that they increase capacity by 20% to £433m for 2003.
The insurer said this is because it expects trading conditions to continue to be favourable, allowing "the syndicate to maximise growth opportunities whilst maintaining an appropriate level of prudence and flexibility".
If Lloyd's consent is granted, therefore, the syndicate's capacity will rise from £361m to £433m.
In addition, the Syndicate will seek to continue with qualifying quota share arrangements, which will enable it to underwrite a further 20% of capacity.
Cox has existing capital resources in place to support its 57% share of the
additional underwriting.
The chief executive of Cox's Retail Division, Neil Utley, said: "The syndicate believes that its position as one of the top ten motor insurers in the United Kingdom stems from strong underwriting disciplines, both with regard to rating and claims handling, plus a tradition for providing the highest quality service to policyholders.
"We wish to maintain that position and that capability going forward into 2003, whilst at the same time maximising profit opportunity for capital providers. Our increased capacity will enable us to increase our gross premiums from the £600m we anticipate in 2002 to over £700m in 2003."
Syndicate 218 is a leading motor insurer at Lloyd's.
