The FSA is to approve Illium Managing Agency to manage Lloyd's Syndicate 4040, with underwriting to start on 1 January 2004.
Illium said specialist international reinsurer Imagine Group has agreed to provide an additional £15m of underwriting capacity for Syndicate 4040 for 2004. Imagine will also purchase a 10% stake in Illium Insurance Group, subject to regulatory approval.
Following Imagine's decision, Illium said it anticipated have underwriting capacity for 2004 of between £95m and £100m, the maximum amount approved by the Lloyd's franchise board.
Syndicate 4040 will write employer's liability, third party liability and contractors' all risks insurance.
