MAP launches £43mn sidecar syndicate
Lloyd’s first sidecar syndicate, Managing Agency Partners Ltd’s (MAP) Syndicate 6103, began underwriting last month after successfully raising £43mn in capital from Lloyd’s Names.
As revealed in December’s The Insurance Insider Syndicate 6103 will take a 33 percent quota share of MAP Syndicate 2791’s US catastrophe reinsurance account and will be the first sidecar syndicate to be capitalised in Lloyd’s (Hiscox’s Panther Re - the first Lloyd’s sidecar - sits in Bermuda with external funding). MAP was aiming to raise £46.3mn for the new Syndicate, which began underwriting on 17 December.
“We were very happy with the amount of capital we raised in such a short space of time, it was over 90 percent of what we were aiming for. So far, things have been pretty good – terms have improved again on US catastrophe XL over last year’s 1 January post-Katrina renewals and we have achieved what we wanted,” Aidan Kong, a director at MAP told Insider Week.
Richard Trubshaw is the underwriter on 6103, which will allow MAP to take advantage of the current strong rating environment for US catastrophe risks by increasing its premium income written by 50 percent from $139mn to $208.5mn. MAP will take a 15 percent profit commission from the new Syndicate which itself will pay a fee of 5 percent of gross premium income to Syndicate 2791.
The concept appears similar in nature to the proposed £200mn short-tail property reinsurance Syndicate 3623, which quoted Lloyd’s insurer Beazley Group attempted to launch a year ago before failing to generate sufficient investor interest.
MAP is a well-respected Lloyd’s agency formed by Shipley, a Lloyd’s Council member and former Amlin underwriter, that began trading in 2001 with a combination of Lloyd’s names and corporate capital.
In the current environment, with rates for US Cat property lines the highest in recent memory, MAP will aim to benefit from with the new syndicate. “It is a late renewal season and we will see brokers having to hold back lines that they have not been able to place,” Shipley told The Insurance Insider last month.