Only two managing agents fail to increase capacity
Lloyd's is set for a bumper year after a raft of managing agents raised capacity levels for 2007.
This week also saw members' agent, Hampden Agencies, announce £43m in premium income capacity had been provided by private investors for new Syndicate 6103. This was to take advantage of exceptional high rates in US property cat reinsurance.
All but two of the top 10 Lloyd's insurers have increased capacity for 2007. Amlin maintained the same level at £1bn and Liberty Syndicates lowered its capacity. Liberty will write £725m for 2007 compared to £912m in 2006.
Meanwhile, Catlin announced the biggest rise in capacity following the acquisition of fellow Lloyd's managing agent Wellington Underwriting.
Catlin will more than double capacity levels of Syndicate 2003 to £1.3bn of business in 2007 compared with a modest £480m in 2006.
Under the deal Wellington's Syndicate 2020 will cease trading and become part of the biggest syndicate at Lloyd's.
It wrote a reported £800m in 2006.
Kiln has also ramped up capacity levels with its syndicates managing more than £1bn, when the catastrophe reinsurance business underwritten on behalf of WR Berkley is taken into account.
But analysts predicted that Lloyd's managing agents would not expand into new lines of business.
Richard Gradidge, an analyst with Numis Securities, told Insurance Times: "Most of the syndicates that have increased capacity are really expecting to take up most of that increase by absorbing higher rates on the main bulk of business such as US property, reinsurance and energy."
Early indications suggest that rates have improved on levels in January 2006 and will remain strong.
