Argo syndicate to exit most hull business amid ‘unsustainable’ combined ratios

ArgoGlobal the Lloyd’s insurer and member of Argo Group, has today announced plans to exit Syndicate 1200 underwriting operations in most of its hull underwriting business within the syndicate.

The syndicate is also set to exit underwriting operations in Asia. The group said the syndicate’s unsustainable combined ratios recently recorded in both portfolios were behind the decision.

Syndicate 1200 hull underwriting represented less than 3% of gross written premium in 2018. The company said it will, however, consider writing certain hull risks on a limited basis through Syndicate 1200 from Dubai.

Argo Group head of international operations Matt Harris said the decision had been made to drive profitability.

“Over the past two years, we’ve taken deliberate steps to improve profitability in Syndicate 1200 and ultimately enhance shareholder value,” Harris said. “We’re executing this through underwriting actions, increased rates, and a focus on digital technology to improve underwriting margins.”

Harris said the group would remain committed to the remaining marine classes it insures, and to insuring hull on non-Lloyd’s platforms.

Asia

The Asia business also being exited accounted for less than 3% of Syndicate 1200 gross written premium in 2018.

Harris said: “The ArgoGlobal Syndicate 1200’s Asia business recently recorded combined ratios are unsustainable and, whilst we still see growth opportunities in the region, we need to prioritize our efforts on profitable growth in other markets.”

The group clarified the announcements would have no impact on Argo Group’s Ariel Re Syndicate 1910 business, including its Hong Kong-based renewable energy business.

All existing policies remain valid and the company will manage claims handling through its London operation.