Another CGNU-backed Lloyd's syndicate has stopped writing new business – the second in six weeks.
Marlborough marine excess of loss syndicate 744 has joined property and personal accident syndicate 1242 in going into run-off. CGNU said it has decided to withdraw its 80% stake from 744 for the 2001 year of account.
The move leaves Marlborough, the Lloyd's managing agency 60% owned by CGNU, with two marine syndicates (1861 & 62) and one non-marine syndicate (1047).
Clive Watson, CGNU London market director, said the two cases were unconnected. Poor trading conditions had led 1242 to be put into run-off last June.
But he stressed: “744 is in a different situation. It is a catastrophe syndicate that suffers from inevitable volatility; its results have been more mixed.”
Watson added it was CGNU's intention to focus on its core Lloyd's marine syndicate of 1861, set up last October for the transfer of its marine business from the London market into Lloyd's.
Capacity for 1861 is £150m, for marine 62, £36.6m, and for 1047 professional indemnity syndicate, £32.3m.