Crowe Syndicate Management has put syndicate 808 into run-off, found a new backer for 1204 and activated a new corporate member in a complete refocus of its business for 2001, writes Christine Seib.
The Lloyd's insurer intends to concentrate on UK motor and life business in the new year, with a gross premium level of £175m for motor syndicate 963 and £11m for life syndicate 982.
Crowe managing director Richard Murphy said heavy London market losses had hit its corporate backers, who have decided to support less volatile business sectors in 2001.
He said they were also keen to reduce the danger of cross-mutualisation by reducing capacity and replacing it with qualifying quota share and co-insurance arrangements.
“As a result, Crowe is seeking to transfer the business of aviation XL syndicate 808 to another insurance carrier,” Murphy said.
He said the syndicate had been expected to make a small underwriting profit from 1998 to 2000 but the expenses expected from the run-off would now put it into an overall loss. Crowe had sought an alternative backer but failed.
The changes also mean Crowe has to find new capital for its professional indemnity and medical malpractice syndicate 1204, although this will continue to be managed by Crowe.
Crowe's corporate member subsidiary Crowe Dedicated Limited (CDL) was hit hard by the closures of syndicates 53 and 1121 earlier this year. It will continue to support syndicate 982 but a new corporate member CDL2 has been activated to provide capital for syndicate 963.