SVBS announced today that it has arranged a £15m qualifying quota share reinsurance for Syndicate 2147 with Berkshire Hathaway.
This arrangement is subject to Lloyd's consent.
The company said it has made this move to take advantage of the favourable current market conditions.
It said: "In the first six months of 2002 SVBS has seen rate increases averaging 59% and a determined approach has been adopted regarding the terms and conditions on which we are prepared to write business."
The group also announced that the merger of Syndicates 1241 and Syndicate 2147 has been approved by capital providers, subject to Lloyd's consent.
It said the operation of the merged syndicate, together with Syndicate 1007, will provide the opportunity to develop centres of excellence, achieve cost reductions and allow some realignment of business for the benefit of all capital providers.
Chief executive Rupert Villers commented: "Our Annual Report stated clearly our determination to return to profitability through disciplined underwriting. We are now certain that we will be able to capitalise on the strong market existing in 2002 to the full extent of our plans. The support of Berkshire Hathaway is a welcome endorsement."
