Beazley in SPS discussions

Specialist insurer Beazley has revealed it is in discussions with a third party reinsurer with a view to establishing a special purpose syndicate (SPS).

The syndicate will provide reinsurance to both Syndicates 623 and 2623 for the 2015 year of account on a whole account quota share basis and would operate in parallel to Syndicates 623 and 2623.

Beazley said that the arrangements would also contemplate the third party reinsurer ceding business to Syndicates 623 and 2623, with aggregate premium level corresponding to the level of premium being ceded to the special purpose syndicate by Syndicates 623 and 2623.

“This disclosure is being made to explain why the capacity for the 2015 year of account as shown in syndicate 623's approved business plan exceeds the amount indicated in the disseminated syndicate business forecast – this is due to the additional premium income that would be expected to arise from the transaction with the third party reinsurer if the managing agent were to enter into it”, said Beazley.