Insurer to write £250m in Lloyd's and take £60m offshore

Lloyd's insurer Euclidian will shrink its business in Lloyd's next year by writing £250m of business, down from £350m.

But a further £60m of capacity will be placed in its new Gibraltar operation.

Euclidian managing director James Corrigan-Stuart is close to completing his capital-raising programme, which he began in the summer, in a bid to buy out Euclidian's major shareholder, Centre Solutions.

A Euclidian spokeswoman said: "We have raised around £310m of capacity which means we are relatively the same size."

But in February this year, Euclidian increased its underwriting capacity to £350m, adding an additional £113.5m in funds for 2003.

Former chairman James Truscott said at the time that the additional capacity was necessary as Euclidian had outperformed its 1999 forecast of capacity of £200m by 2005.

Euclidian was to use the extra capacity to write aviation and space reinsurance, US property reinsurance, personal accident reinsurance and all classes of retro reinsurance.

It also wanted to expand its capacity in its existing classes of business including property, marine, liability, personal injury and UK personal lines.

The spokeswoman would not comment on rumours that Euclidian had exhausted its capital-raising drive and that the £310m would be the final capacity total.