Syndicate cash bait

embers' agents are enticing underwriters to start up new Lloyd's syndicates by offering financial backing.

Trends towards syndicates owning more of their own capital has left Names facing a dwindling number of syndicates in which to invest.

Seven syndicates became closed to Names during 2002 as their capacity was bought out.

Four members' agents, representing £3bn of Lloyd's capacity, said they were interested in backing new syndicates. Two or three could be supported over the next two years.

In 2001 members' agents provided £77.5m of capacity to David Shipley, active underwriter of MAP Syndicate 2791 and £60.9m to Elvin Patrick's Cathedral Underwriting, both of which became successful.

Shipley said members' agents' backing had been vital to his success.

Lloyd's franchise performance director Rolf Tolle said: "High quality new syndicates are a necessary factor in the continued success of the market."

Members' agents keen to give their backing are Anton Private Capital, CBS Private Capital, Hampden Agencies and SOC Private Capital.

Hampden Private Capital director John Francis said members' agents could provide similar sums to two or three businesses over the next two years.