Dex forced to pull out of Lloyd's

Pressure from Lloyd's franchise board this week forced Dex Syndicate 2241 into run-off and the insurer to move away from the Lloyd's market. The syndicate specialises in marine hull.

A Lloyd's spokesperson said: "Under the new Franchise arrangements, Lloyd's has set out certain underwriting guidelines which are based on sound business practices.

"We have been involved in discussions with Syndicate 2241 to resolve a number of concerns, including the extent to which their 2004 Business Plan would comply with these guidelines. We set out clearly the modifications that were needed.

"Dex have informed us that, rather than make the suitable changes, they intend to move their business outside of Lloyd's."

It is understood that one of the major concerns was the franchise board guidelines which indicate that "any gross line size for individual risk as a percentage of total capacity should be no more than 10%". In the case of Dex, the percentage was over 50%.

Dex Services spokesman Mark Carter said: "Basically our model is based on taking large lines on major shipowner's risk, and in taking the bigger interest we can offer our clients claims handling and consulting services.

"Without this larger interest, it is not economic to offer this business."

Dex will place the syndicate into run-off from 31 December 2003. It will continue to be managed by Thomas Miller Managing Agency.