Energy reinsurer consists of a new Lloyd’s syndicate and a Bermuda entity; private equity firm First Reserve is Starr's partner
Starr Managing Agents, part of CV Starr, has announced a partnership with First Reserve Corporation, a private equity firm specialising in the energy industry, to form Lloyd’s Syndicate 2243.
The new syndicate will be part of Sideris Re.
The new syndicate will begin its first full year of trading in 2008 with a capacity of £30m and will be a companion syndicate to the existing CVS 1919, which began trading in 2006.
From 1 January 2008, SMAL will manage both syndicates with a combined capacity of £210m.
Sideris Re is a five-year partnership between First Reserve and CV Starr.
It is comprised of a Bermuda reinsurance company, which will participate in the insurance offered to US domiciled clients and the Lloyd’s syndicate, which will participate in the insurance offered to international clients.
The syndicate’s business plan is to underwrite 100% energy and other complex technical property risks.
The active underwriter is David Stewart, who currently works for CV Starr subsidiary, Starr Underwriting Agents Limited in London, as the chief underwriting officer of SUAL’s Starr Technical Risks division.
Syndicate 2243 began trading on 1 November, 2007 with an initial capacity of £10m.
“The opportunity to partner with CV Starr and the platform with Lloyd’s, both with long histories and leading roles in the insurance and energy sectors, is an exciting way for First Reserve to continue its investment in this part of the industry,” said Mark McComiskey, managing director at First Reserve Corporation.
“Moreover, Syndicate 2243 offers First Reserve the potential for a permanent platform in the insurance sector, with the ability to leverage the global brand, market penetration, international licensing and highly-rated credit of Lloyd’s to expand the scope of investment opportunities available to First Reserve in the global energy insurance sector,” he added.
Richard Shaak, president and CEO of Starr Technical Risks commented, “CV Starr is pleased to introduce First Reserve to the Lloyd’s market and look forward to developing a long standing and mutually beneficial business relationship.”