The company wants to capitalise on its position in treaty reinsurance
Beazley is in discussions with members’ agents at Lloyd’s over the potential creation of a special purpose syndicate (SPS) to operate as a reinsurance sidecar to Beazley’s treaty account, capitalising on Beazley’s position in the treaty reinsurance market.
Beazley has been underwriting treaty reinsurance since the company’s formation in 1986 and currently leads approximately 40% of the catastrophe excess of loss property business written and 35% of per risk excess of loss property business. Rates on renewal business underwritten by the Beazley treaty team rose by an average of 10% in the first six months of 2009 and demand for our capacity is currently strong.
The proposed creation of a special purpose syndicate is motivated by a medium term strategic objective to increase line size. The SPS would be expected to write business through the 2010-2012 years of account, with the intention to retain capacity beyond 2012.