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Syndicate 2526 put into run-off by AmTrust

  • Publish Date: Posted about 7 years ago

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.