The FSA has granted approval to Lancashire Insurance Company (UK) to commence underwriting across four lines of business — property, energy, marine and aviation.
The authorisation covers the same lines of business as Lancashire Holdings' Bermudan subsidiary, Lancashire Insurance Company Limited.
LUK, which is capitalised at £60m and has received an A- (Excellent) rating from AM Best, has also entered into a quota share agreement with LICL for a whole account cession of a percentage of risks written in the UK.
Richard Brindle, chief executive and chief underwriting officer, said: “We are very excited about the authorisation of our London underwriting operation. Lancashire UK is an accretive, organic addition to our existing operation and one which will greatly increase the flexibility of our operations and afford us access to a wider pool of high quality risks. We expect to see the benefits of this almost immediately when we commence underwriting, and we look forward to capitalising on these benefits as we move into 2007 and beyond.”
