ArgoGlobal & Asia Capital Re partner to launch SPS
Lloyd’s insurer ArgoGlobal and reinsurer Asia Capital Reinsurance have partnered to launch a special purpose syndicate (SPS) to underwrite Chinese risks.
The syndicate, which aims to begin underwriting for the 2016 year of account, will be managed by ArgoGlobal Managing Agency. It will be supported by a corporate member capitalised entirely by Asia Capital Re.
Under the new agreement, Lloyd’s China (ArgoGlobal division) will underwrite a selected proportion of Asia Capital Re’s multi-class Chinese business portfolio.
The portfolio isanticipated to represent approximately £30-35 million of gross net premium in 2016. The new SPS will then underwrite an 80 percent quota share of this proportion, with the remaining 20 percent being retained by ArgoGlobal’s Syndicate 1200.
ArgoGlobal said the 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, 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 to provide our China business partners with even more relevant and secure risk management support as the country continues on its economic growth trajectory.”
