Lloyd’s has informed the market of ProSight’s decision to place Syndicate 1110 into run-off.
In a market bulletin dated 9 June, Lloyd’s said that it supported ProSight’s decision and will be working closely with the company to ensure that the run-off is handled efficiently and effectively for all constituents.
The Corporation noted that Syndicate 1110 remains fully able to meet all claims, adding that ProSight will continue to service the syndicate’s business.
“While Syndicate 1110 will not be accepting any new business, on all existing business brokers should continue to deal with their usual contacts at ProSight, who will be available to assist with any risk written by the syndicate,” the bulletin stated.
Lloyd’s said that ProSight intends to appoint a third party to take over the management of the run-off, adding that a “process is underway to select that provider” and that further details will be announced in “due course”.
The decision to put the business into run-off follows reports by The Insurance Insider earlier this year that US specialty insurer ProSight, which is backed by GS Capital Partners and TPG Capital, had launched a sales process at group level.
However, after failing to secure the desired premium valuation, it was reported that efforts to auction the whole group were abandoned, with ProSight’s board instead appointing a bank to sell off its Lloyd's operation.
Last month, the publication reported that Lloyd’s had asked ProSight to prepare a contingency plan in case the Lloyd’s business was put into run-off.
In 2016, Syndicate 1110 generated gross written premiums of £245mn, with over half emanating from the US. The syndicate’s stamp capacity increased to £280mn for 2017.