ArgoGlobal & Asia Capital To Launch Syndicate
ArgoGlobal, the Lloyd’s insurer and member of Argo Group, and Asia Capital Reinsurance Group Pte. Ltd announce that they have signed a Heads of Agreement to establish, subject to Lloyd’s and other regulatory approvals, a Special Purpose Syndicate at Lloyd’s to underwrite Chinese risks.
The new SPS, which aims to begin underwriting for the 2016 year of account, will be managed by ArgoGlobal Managing Agency and will be supported by a Corporate Member capitalised entirely by Asia Capital Re.
Asia Capital Re has a significant multi-class portfolio of Chinese business. Under the new agreement, Lloyd’s China [ArgoGlobal division] will underwrite a selected proportion of this portfolio, with Asia Capital Re providing the underwriting expertise and local risk knowledge of the Chinese market.
The portfolio is anticipated to represent approximately £30-35m of Gross Net Premium in 2016. The new SPS will then underwrite an 80% quota share of this proportion, with the remaining 20% being retained by ArgoGlobal’s Syndicate 1200.
The diversified portfolio will mainly comprise existing facultative reinsurance and non-proportional treaty businesses including aviation and space, marine, property and engineering, casualty and trade credit.
David Harris, Managing Director of ArgoGlobal said: “It is strategically important that, as a market, we continue to innovate to generate new, profitable business. This agreement marks a significant development for ArgoGlobal and brings genuinely new business to our market.
“We look forward to working closely with Asia Capital Re as this venture grows both in existing lines and through the addition of further specialist products”
John Tan, Group Chief Executive of ACR Capital Holdings, added: “This partnership represents a milestone for Asia Capital Re and is strong affirmation of our commitment to serving the China market. There is great synergistic potential between ArgoGlobal and Asia Capital Re in this innovative structure.
“We are very pleased to have forged this partnership which will enhance the profiles of all parties and encourage knowledge sharing. Most of all, through our combined force, we will be able toprovide our China business partners with even more relevant and secure risk management support as the country continues on its economic growth trajectory.”
