Wellington Underwriting signed a new credit facility of £120m with a group of banks led by Barclays Bank and Lloyds TSB.
It said the new credit facility would replace Wellington's existing £42.6m letters of credit (LOC) facility.
Wellington said there were three elements to the new arrangements. An LOC of up to £75m is to be used as funds at Lloyd's to support Wellington's underwriting on its managed Syndicate 2020 for the 2004 and 2005 years of account.
The second element will be a revolving credit facility of £15m on which Wellington can draw for working capital purposes, said the company.
The final element is a £30m term loan which may be used for general corporate purposes and to finance new business initiatives.
