Underwriting vehicle will likely scale back its participation in motor syndicates
Hampden Underwriting, a vehicle that enables investors to fund underwriting at Lloyd’s on a limited liability basis, is likely to reduce its participation in motor syndicates for 2011 after making a £58,000 loss for the first half of 2010, according to non-executive director Jeremy Evans.
In addition to catastrophe losses, Hampden’s H1 result was hit by a £350,000 charge related to the deterioration of the UK motor business from 2008 to 2010. The majority of the loss related to Hampden’s participation in Equity Syndicate 218, although part was attributable to KGM Syndicate 260.
Equity made a loss for the year to 30 June 2010 of £218m, after strengthening prior- and current-year motor reserves by £225m. Hampden has a £147,138 participation in Syndicate 218 for 2010; 1.67% of its total £8.8m participation at Lloyd’s.
Evans said it was reasonable to assume that Hampden would be reducing its participation in motor syndicates in 2011 following the loss, but declined to quantify cutbacks as the firm is still determining its underwriting portfolio for 2011.
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