New Lloyd's syndicate 6103 has attracted £43m of private investors' capital. Members' agent Hampden Agencies has provided £28.6m alone for the US property catastrophe reinsurance syndicate, which has been developed by MAP, the managing agent of Lloyd's syndicate 2791.
Syndicate 6103 will trade for one year initially, although this may be extended depending on rates.
MAP has taken advantage of new Lloyd's rules on mid-term start-ups, incorporating more flexible regulations about raising capital.
David Shipley, active underwriter of MAP Syndicate 2791, said: “We identified an opportunity for capital providers to participate in a specialist line of business where there is a need for new capacity. This was a test of the Lloyd's market's ability to respond, and private capital rose to the challenge.”
Nigel Hanbury, chief executive of Hampden, said: “This shows how quickly and effectively private investors can react to a managing agent's request for fresh capital, also how cost effectively private capital can be deployed within Lloyd's. The establishment of MAP's new syndicate 6103 shows the flexibility in the Lloyd's platform compared with rival insurance centres such as Bermuda. I hope that others wanting to raise capital for insurance ventures will take note of its success.”
