Chaucer to throw away the turnkey in 2013
Chaucer will cease to offer turnkey services to the Lloyd's market in the first half of 2013 when Torus, its final client, sets up its own managing agent, The Insurance Insider can reveal.
Chaucer's other turnkey client, Icat Syndicate 4242, is understood to be moving its syndicate across to rival turnkey provider Asta, effective 1 January 2013.
The Insurance Insider reported in November 2011 that Chaucer was considering exiting the provision of third-party management services following its £313mn acquisition by US insurance group The Hanover earlier that year.
Torus immediately made clear its ambition to quickly establish its own managing agent after it acquired Broadgate Syndicate 1301.
And with in principle approval from Lloyd's, it is likely to go it alone in the first six months of 2013.
Icat's migration to Asta, formerly known as Whittington, was all but a foregone conclusion once the turnkey business was acquired last year by a consortium, which included Icat, along with Skuld and Tawa.
Sources said that Skuld Syndicate 1897 is expected to move its business to Asta when it is free to sever ties with existing turnkey provider Randall & Quilter (R&Q) at the outset of 2014.
Icat's move further strengthens the dominance of Asta in providing third-party syndicate services to the Lloyd's market.
Asta currently manages Sirius Syndicate 1945, Scor Syndicate 2015, Ariel Syndicate 1910, Dale Syndicate 2525 and Dore Syndicate 2526. It has also recently assisted WR Berkley in establishing its own managing agent.
Asta's other rivals have only one syndicate apiece. R&Q manages Skuld Syndicate 1897, Argenta manages ProSight Syndicate 1110, Capita turnkeys Allied World Syndicate 2232 and ANV looks after Apollo Syndicate 1969 as a legacy of its acquisition of Flagstone at Lloyd's.
Lloyd's turnkey providers face the challenge of a limited supply of syndicate start-ups in the pipeline as the Franchise Board is cautious about new entrants.
This is the last of The Insurance Insider's Monte Carlo 2012 alerts. Until next year...
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