US insurer to back new Canopius special-purpose syndicate
US insurer Tower Group plans to provide £200m of the Lloyd’s market’s projected GWP next year.
As part of this, the company is providing £70m of capacity to a new special-purpose Lloyd’s syndicate - Syndicate 6115 - formed by Canopius. The new syndicate will reinsure Canopius’s main Lloyd’s unit, Syndicate 4444, on a quota-share basis.
Tower will also offer £78m in capacity to other Lloyd’s syndicates.
Tower will support the addditional syndicates through its corporate Lloyd’s member, Tower Corporate Capital 1, which has been established with the assistance of Lloyd’s investment adviser Argenta Private Capital.
Argenta will provide administration services for the majority of Tower’s non-Canopius activities.
Tower president and chief executive Michael Lee said: “We have a very high regard for the Canopius management team led by its executive chairman, Michael Watson, and its strong track record and expertise in the specialty and international business underwritten through the Lloyd’s market.”
Lee said that the new initiatives would help Tower achieve one of its key strategic objectives by significantly accelerating its involvement with the Lloyd’s market.
Tower is in the process of merging with Canopius’s Bermuda unit Canopius Holdings Bermuda.
In August Tower invested $75m (£46m) in Canopius in return for a 10.7% stake in the Lloyd’s insurer.
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