Four former Limit underwriters have set up a new Lloyd's syndicate (2010) to write aviation and worldwide non marine treaty reinsurance.
This is the second group of four underwriters to have left Limit since it was bought by Australian insurer QBE.
Elvin Patrick, formerly of Limit syndicate 566, will be active underwriter for the new syndicate, whose managing agency is Cathedral Underwriting.
The Limit colleagues who joined him are John Hamblin, Richard Williams and Mark Wilson. Hamblin will write property treaty and aviation, Williams will write aviation and Wilson will write property treaty at the new syndicate.
The four left Limit around the same time as its syndicate 79 underwriters Paul Dawson, John Chambers, David Croom-Johnson and Richard Palengat. They joined US-backed Lloyd's syndicate 1225 Associated Electrical & Gas Insurance Services.
The departures were widely linked to changes wrought by the Australian insurer's acquisition of Limit.
Cathedral Underwriting, a subsidiary of Cathedral Capital plc, will have an initial capacity of £80m. Its backers include PMA Re and US-based NY Magic. The two will provide about £19m capacity while Cathedral Capital, of which the agency management own 30%, will provide £20m. The balance will come from Lloyd's members' agents.
Patrick said the syndicate would concentrate on reinsurance business, particularly aviation and worldwide non-marine treaty. About half the non-marine business will be US property, which he expects will provide about 20% of the syndicate's income. It may also write a small marine reinsurance book.
“Over time, the syndicate plans to develop wider risk-based products,” Patrick said. “These may include structured balance sheet protections.”
Cathedral Underwriting managing director Lawrence Holder said the syndicate was coming into its selected markets at a time when they were firming up but said the strength of Cathedral's underwriting team would keep it buoyant.
“There's clearly a lot of participants but it's had a pretty difficult time in recent years and a number have fallen by the wayside,” Holder said. “There's been quite big losses coming through from the early 1990s, which were very strong market times.”