Copenhagen Re UK is planning to set up a new syndicate at Lloyd's in addition to its current operations at the London Underwriting Centre.

The Denmark-based insurer will launch a new syndicate with 10 underwriters in the 300-year-old market from October 1.

This will assume responsibility for the specific risk portfolio of the company's UK branch, which is currently underwritten at the London Underwriting Centre.

It includes its financial institutions, marine, engineering and facultative business. Copenhagen Re expects the syndicate to produce annual premiums in excess of £40m, or 20% of its worldwide business.

The move follows the earlier decision to transfer some marine and financial institutions business to Lloyd's last year.

Copenhagen Re's UK managing director Robert Johnston said: "The reason we chose Lloyd's is because it offers access to new distribution channels, new business and the benefits of a world licensing scheme."

He acknowledges that setting up in Lloyd's may involve some added costs but believes it will be worthwhile.

The new syndicate will be managed by PXRE Managing Agency, the specialist captive and corporate management services provider.

Copenhagen Re will continue to have a substantial presence at the LUC for its reinsurance treaty portfolio and the Lloyd's move does not affect business written by the group outside London.