Scor reviews corporate member book as Lloyd's squeeze intensifies

Scor has indicated that it will scale back its Lloyd's corporate member business for 2020 following its under-performance in a fresh sign that syndicates reliant on trade capital face a challenging coming-into-line season. 

The Paris-headquartered reinsurer is the biggest provider of third-party corporate member in the market and currently supports around £200mn ($246mn) of capital, across what is believed to be around eight-to-10 separate syndicates. 

Scor's move comes after this publication broke the news last month that PartnerRe, another meaningful player in the Lloyd's reinsurance capital space, had launched a review which will result in a significant scale back in appetite for such deals. 

Scor's corporate member vehicle also provides all of the underwriting capital for its own Lloyd's business Channel Syndicate 2015, but this is not part of the review. 

The reinsurer obliquely referenced the review in its investor presentation without providing details, but had already begun to prepare the market for the fact that its involvement next year would shrink. 

Scor has a 5 percent participation on Canopius Syndicate 4444, where it owns the tenancy rights. It also has a share of well-performing Ark. 

Other participations are believed to include DTW 1991 and Mike Pritchard's Agora Syndicate 3268. 

Sources said that Scor has yet to take a final decision on how it will deploy its capacity for 2020.

Trade capital providers exposed to the first dollar of capital erosion have taken heavy losses at Lloyd's through 2017 and 2018 following significant catastrophe losses and years of compound rate reductions. 

As a whole the Lloyd's market made £4.5bn of underwriting losses across the 2017 and 2018 calendar years. 

Scor declined to comment further for this story.