Kiln to merge syndicates

Lloyd's insurer Kiln has issued a letter of intent to merge two of its syndicates – 807 and 510 – with effect from 1 January 2012.

Kiln has five syndicates at Lloyd’s. Its largest syndicate, 510, includes its property & special lines; marine & special risks; accident & health; aviation; enterprise risks and treaty reinsurance divisions.

Syndicate 807 underwrites similar lines of business, including treaty reinsurance, medical and property risks.

Kiln said the merger will simplify the its structure and realign its capabilities "to realise enhanced value for both clients and capital providers."

Charles Franks, group chief executive officer of Kiln, said: “While Kiln is one of the longest-established insurers in the Lloyd’s market, we remain agile and work to ensure that our structure is aligned with the markets in which we operate.

“Like any well-run business, we continually review the effectiveness of our activities. This decision is part of our consistent, long-term strategy for growth, which involves expanding our specialist product portfolio, enhancing our distribution network and improving the efficiency and productivity of our operations."

He continued: “Over time, the differentiation in product range and capital base between Syndicates 807 and 510 has reduced significantly. By merging 807 with 510, we will create a much larger and more diverse syndicate, which will be better placed to take advantage of opportunities that arise when the market turns.

"The proposed merger will also simplify our structure and enable us to utilise better our capabilities. This will strengthen the business and improve its efficiency for the benefit of all our stakeholders."

Syndicate 807 will continue to operate fully, accepting new risks and renewals.

Thereafter, all of the business lines that have been developed through 807 will continue to run through 510. All risks incepting from 1 January 2012 will be absorbed by 510.

The merger, which is subject to approval from Names and regulators, will generate enhanced returns for our capital providers by creating greater diversification and increased business revenue, Kiln said.