Moody's Investors Service has placed the B- (below average) performance rating of Syndicate 1047 - Sackville Syndicate Management - under review for possible downgrade.
Moody's said that although the syndicate is historically profitable, it has recorded a significant loss of 45% for 1999 and a further loss of 15%-25% is forecast for 2000.
It added: "The combined 1047/1173 stamp capacity for 2002 of only £34m, a level below that originally intended, is testament to constraints, particularly post WTC, on the syndicate's SOC capital providers."
Syndicate 1047 is being written in parallel from 2002 with syndicate 1173 and is proposed to merge with Syndicates 1173 and 2121 for the 2003 account.
Moody's said placing the rating under review reflected the agency's concerns over the amount of capital that will be allocated to Syndicate 1047's business within the proposed merged entity in 2003.
