Berkshire Hathaway, via its subsidiary National Indemnity, has agreed a £50m whole account qualified quota share arrangement with Euclidian. The deal increases the underwriting capacity of Euclidian's Syndicate 1243 to £213m for this year.
Following an earlier increase of £42m in January, the Berkshire Hathaway deal secures a 75% increase in the syndicate's capacity for the 2002 year.
The company said the additional capital would be used in currently high-performing classes including international personal accident, international property, UK
personal lines and excess of loss reinsurance.
Euclidian chairman James Truscott commented: "This is a very significant business development and a huge vote of confidence for Euclidian and Syndicate 1243.
"In agreeing the maximum allowable 30% quota share, Berkshire Hathaway has effectively given us the best possible endorsement of the quality of our management, operations and business plan - and the statistical expertise that allows us to be confident in predicting profitable underwriting results."
The arrangement remains subject to the relevant Lloyd¹s approvals, which are expected this week.
