Listed Lloyd's underwriter Wellington has run out of time to establish a new underwriting vehicle by the end of 2001, but plans to have the venture in operation by the end of the first quarter next year.
The insurer said today that it had secured in principle support for the £400m insurance company from prospective investors but that it had been unable to gain approval from "members' agents representing Names providing third party capacity to Wellington's (existing) Syndicate 2020".
Wellington first revealed plans for the new company on 23 November 2001. It said it would be used to support the expansion of its underwriting activities. Capital providers involved were named as Candover Partners, Electra Partners Europe, 3i Group and Phoenix Equity Partners.
The new company will be London-based, FSA-authorised and capitalised at £400m.
Wellington also confirmed today that it was raising the underwriting capacity for its managed Syndicate 2020 by 25% to £625m for 2002. It said its dedicated corporate vehicles would continue to provide approximately 46% of Syndicate 2020's capacity.
