Danish Re has acquired Newmarket Underwriting following revelations that Newmarket, the Lloyd's managing agency, has closed its marine operation.
Newmarket's syndicate 1900 temporarily suspended its marine underwriting on May 31. Last week directors at a board meeting decided to cease writing all marine and energy cover, other than onshore energy business.
An insider said the decision followed poor underwriting results and confirmed there will be no job losses. It is thought marine insurance accounts for 25% of the syndicate's business.
Newmarket, which opened for the year 2000 account and has around 35 staff, has now been taken over by Danish Re subject to regulatory approval. Trident II, the majority owner of both companies, has endorsed the takeover.
Danish Re also began trading last year, making a net loss of $9m for the year 2000 account due to start-up costs. The Copenhagen-based company operates in the London Market as an integrated Lloyd's vehicle, focusing mainly on short-tail lines of business.
This year, Newmarket had a stamp capacity of £95m and wrote marine, casualty and treaty reinsurance. The combined group will have a capacity of more than £200m.