Insurer outperforms forecasts and seeks greater market share
Lloyd's insurer Euclidian has increased its underwriting capacity to £350m, adding an additional £113.5m in funds for 2003.
Euclidian's majority shareholder, Centre Solutions, has increased its contribution by £23.5m, bringing its total contribution to £259.5m. AIG is contributing £50m, Everest Re £23m and the Royal Bank of Scotland, £17m.
Euclidian chairman James Truscott said that the additional capacity was necessary as Euclidian had outperformed its 1999 forecast of capacity of £200m by 2005.
He said: "We have managed the business well ahead of the business plan.
"With this additional capacity behind us we are well placed to take advantage of current market conditions by increasing our involvement in classes of business where we perceive strong potential for profitable underwriting."
Truscott said the increased capacity would allow Euclidian to write aviation and space reinsurance, US property reinsurance, personal accident reinsurance and all classes of retro reinsurance.
"They're areas that we think will be particularly profitable this year," he said.
The additional capital would also allow Euclidian to expand its capacity in its existing classes of business including property, marine, liability, personal injury and UK personal lines.