AmTrust has placed Syndicate 2526 into run-off after it was unable to make a profit from the business.
Adverse reserve development was also a factor in the decision to end underwriting at the Syndicate. The management team made the decision after they realised that 2017 would produce a loss on the current business plan.
AmTrust’s acquisition of the syndicate marked its entry into the Lloyd's market when it bought the syndicate for £8mn in 2012. AmTrust has spent more on the non-aligned portion of Syndicate 2526's capacity in auction than on acquiring the syndicate itself.
The management team had made a number of changes to bring the company into profit and, while accepting a loss in 2016, it was predicted the company would turn a corner in 2017 and bring in a profit, which has proven not to be the case.
