Bermuda-based reinsurer Hamilton Insurance Group has announced that it is placing Acappella Syndicate 2014 into run-off with immediate effect.
Group CEO Pina Albo explained that the third-party capital-supported Lloyd’s syndicate was not expected to produce an adequte return on capital.
Hamilton took on the syndicate as part of its recent acquisition of Pembroke Managing Agency Limited (now Hamilton Insurance UK Limited).
“As we completed the capital raising process at Lloyd’s, we concluded that Acappella was unlikely to produce an adequate return on capital,” Albo stated.
“As conscientious stewards of both our and third-party investors’ capital, and with our focus on underwriting profitability, it was determined that the best course of action would be to discontinue the business,” she explained.
Hamilton is expecting a continued smooth handling of policyholder obliations, and is currently in discussions with employees who are impacted by this decision, Albo added.
Following a strategic review, Pioneer determined that the cost of capital within the structure of its Syndicate 1980 at Lloyd’s was no longer economically efficient when compared with its other capital arrangements.
Vibe, meanwhile, said that it had been unable to secure the support it needed to grow Syndicate 5678 to an adequate scale to thrive in the current market environment.