Wellington Underwriting Agencies will not take up the full quota share arrangement offerred by Wellington Re.
Wellington Re will take up a 7.5 per cent. quota share of Syndicate 2020's whole account for 2003.
On the formation of Wellington Re, Wellington Underwriting Agencies and Wellington Re agreed that Syndicate 2020 and Wellington Re would offer each other quota shares of up to 20 per cent. of their respective underwriting portfolios annually for 2003 and beyond.
Wellington Underwriting said that for 2003 the interests of capital providers backing Syndicate 2020 will be best served supporting Syndicate 2020's own lines of business.
Syndicate 2020 retains the option to accept quota shares
of up to 20 per cent. of Wellington Re's underwriting for 2004 and subsequent years.
Wellington is today posting an offer to capital providers supporting Syndicate 2020 for 2002 inviting them to purchase up to 150,000 of the shares held by Wellington in Wellington Re's holding company Aspen. Wellington currently holds 1,205,523 shares in Aspen representing 21.2% of its current share capital.
