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Advent integration into Fairfax companies continues

As reported last month, the Canadian conglomerate announced that it intended to merge its smallest Lloyd’s operation into Brit, Newline and Allied World.

All of the staff at Advent – who number just over 100 – are being placed under consultation, although Fairfax is likely to look to transfer as many as possible to its other carriers.

Prior to Fairfax’s announcement, this publication reported that Advent had pulled out of open market hull and cargo business.

This was followed by news that Advent’s binders and casualty treaty teams are to move to Brit.

It is understood that the current head of property binders at Advent, Sarah Mendola, will move to Brit to head up an enlarged property binders team.

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Jim Quinn, head of reinsurance at Advent, will set up a casualty treaty unit in New York for Brit, re-joining a business he left five years ago.

Earlier this week, The Insurance Insider revealed Syndicate 780 was to transfer its accident and health (A&H) portfolio to Allied World.

According to Lloyd’s syndicate results for 2017, A&H made up $86.2mn of Advent’s $271.2mn of gross written premium, making it the largest segment by class of business.

Sources have indicated that much of the business is reinsurance for Fairfax travel and personal accident insurance policies.

On the syndicate’s website, Advent lists coverage areas including sports disability, aviation, war and terror personal accident, occupational accident and student accident and travel. Products can be written on a direct, facultative or treaty basis.

Simon Brimicombe, head of consumer products, is listed under key contacts. It is unknown what will happen to Brimicombe and any other affected staff.

Allied World declined to comment.

Fairfax has indicated it intends to transfer some of Advent’s books of business to Brit and some to Allied World, placing the rest into run-off, potentially through its legacy vehicle RiverStone.

Sources have suggested Advent’s open market direct and facultative property book is likely to be put into run-off, given the weak profitability of the class.

As yet, it has not been revealed what will happen to Advent’s well-established terror book.

Advent Syndicate 780 reported a loss of $20.4mn in 2017, swinging from a profit of $12.4mn the previous year.

It ran up a combined ratio of 126 percent, almost 26 points worse year on year.

Syndicate 780 wrote $271mn of business in 2017, 5.2 percent more than in the preceding year.

 

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