The Oxford Syndicate has collapsed and investor money returned, after the start-up team failed to secure the £10m letter of credit necessary to get the new syndicate running.

The failure cost the Edgar Hamilton Group, the company behind the start-up, almost £250,000 but chairman Terry Wellard vowed to investigate the possibility of launching a new motor syndicate next year.

The Oxford Syndicate, launched in April, was to be broker-backed and managed by George Higginson and Steve Windich.

However, broker response was less enthusiastic than expected and a major reinsurer withdrew its offer of corporate capital three weeks ago.

Wellard said he was not daunted by the collapse of the venture.

“No one's to blame, we've just been beaten by the system,” he said.

Wellard said the new motor syndicate may not follow Oxford's broker investment route.