Jago has reduced its stamp capacity for Syndicate 205 in 2002 to £80m but pledged to maximise profit by focusing on its core specialist areas of underwriting.
Lloyd's managing agency Jago has reduced its stamp capacity for Syndicate 205 in 2002 to £80m but pledged to maximise profit by focusing on its core specialist areas of underwriting.
This compares to a capacity of £121m for 2000 and 2001. The syndicate has also forecast premium income at £64m for 2002, down from premium income of £117m for 2000.
Syndicate 205 is a predominantly short-tail non-marine US orientated syndicate.
The syndicate's principle capital providers are Gulf Insurance Company, part of the Travelers Group, and Jago Capital Limited, backed by Aon and St Paul. They have committed themselves to supporting Syndicate 205 up to and including the 2004 account.
Meanwhile, ratings agency Moody's has assigned a negative outlook to the B Average performance rating of Syndicate 205, in light of concerns over recent poor performance and concerns over the level of profit the syndicate might achieve going forward.
The agency said Syndicate 205's 1998 result and the open years 1999 to 2001 had suffered from soft market conditions, losses from its US liability and binding authority books, as well as losses from the terrorist attacks in the US.
A loss of 13% of capacity was recorded in 1998 and losses of 20% and 15% have been forecast for 1999 and 2000, respectively.
