Marine insurance provider Skuld will cease underwriting business from its Lloyd's syndicate 1897 in a move the company hopes will 'improve its profit potential', but will lead to role reductions and some staff departures in London.
Lloyd’s syndicate 1897, which writes marine, energy, cargo and liability insurance, will cease to accept new business by 1st July 2019, the company confirmed in a Feb. 28 statement.
"All outstanding policies will continue to be handled in-house, to ensure a full continuity of Skuld service to members and clients. Skuld will work closely with brokers and regulators to ensure the transition is seamless," Skuld said. "Some roles at the syndicate will cease, and some staff will leave Skuld over the coming months."
Additionally, the company announced that it will underwrite all its hull and offshore energy business on the A-rated corporate paper of Skuld Assuranceforeningen, through Skuld UK in London and SMA in Oslo.
The transfer of business from Lloyd’s to corporate paper is said to be a part of a wider strategy to enhance its commitment to non-protection & indemnity (P&I
) business and to streamline all of the company’s insurance offerings.
Ståle Hansen, Skuld president and CEO, said: “Our overriding focus at Skuld is to provide the best service and competence to our members and clients. This requires us to be firm on our strategy of innovation, diversification and sustainable growth. In recent years we have expanded our offering beyond traditional P&I to include marine and energy insurance underwritten through syndicate 1897 at Lloyd’s (launched in 2011) and Skuld Marine Agency (acquired in 2016).
“With the establishment last year of Skuld UK, operating as a fully authorised branch of Skuld/SMA, we are now able to reorganise Skuld to better deliver our highly-regarded insurance services through an even more streamlined structure and improve operational synergies."
Hansen added: “This adjustment to our marine and energy insurance underwriting will reduce Skuld’s overall expense ratio, and therefore enhance our proposition and improve our profit potential. That underpins our goal of providing relevant products to members and customers, and at the same time ensuring we deliver the market-leading Skuld service to all.
“London remains a focal point and these developments allow us more easily to align P&I with other product lines.”
Skuld, Lloyd's, Syndicate 1897, London market, Marine, Insurance, Professional indemnity, Cease, Job cuts, Losses, Ståle Hansen, UK, Oslo, Europe