Syndicate 2014, bought earlier this year by Hamilton Insurance Group from Pembroke Manging Agency (PMA), is to go into run-off, the third syndicate at Lloyd’s this month to announce such an intention.
The third-party capital backed syndicate came to Hamilton as part of its recent acquisition of PMA Ltd, which was renamed Hamilton Insurance UK Ltd.
Group CEO Pina Albo said that “as we completed the capital raising process at Lloyd’s, we concluded that Acappella was unlikely to produce an adequate return on capital,”, adding that “as conscientious stewards of both our and third-party investors’ capital, and with our focus on underwriting profitability, it was determined that the best course of action would be to discontinue the business”.
Hamilton said that it expected a continued smooth handling of policyholder obligations.
The Syndicate (Active Underwriter DR Jones, appointed January 19th 2018) was managed by PMA, ultimately owned by Liberty Mutual, before on March 14th this year Liberty Mutual announced the sale of PMA to Hamilton Insurance Group.
The Syndicate underwrites Marine Liability and War & Terrorism. The Marine Liability line of business underwrites two sub-classes: Marine Liability and Energy Liability. The geographical segmentation of exposures is diverse.
Lines already put into run-off comprised Cargo and Property Binders, which were placed into run-off during 2018.
|Gross written premium||199,704||185,570|
|Loss for the financial year||(17,499)||(21,107)|
|Investments, cash and deposits||183,485||139,324|
The Syndicate reported a loss for the financial year of £17.5m (2017: £21.1m loss), on increased gross written premiums. The net combined ratio was 112% (2017: 117%). Investment return in 2018 was £2.8m (2017: £1.2m).
Capacity was reduced for 2019 to £138m (from £150m) following the decision to exit both the Cargo and Property Binder classes of business in July 2018.
The joint venture between Ironshore and Willis that was called Acappella had already been dissolved by mutual agreement. The Syndicate retained the Acappella brand.
|2018 £000||GWP||GPE||GCI||Gross op exp||Reinsurance bal||Total|
|2017 £000||GWP||GPE||GCI||Gross op exp||Reinsurance bal||Total|