Reinsurance News

Hamilton puts Acappella syndicate into run-off

18th November 2019 - Author: Matt Sheehan

Bermuda-based reinsurer Hamilton Insurance Group has announced that it is placing Acappella Syndicate 2014 into run-off with immediate effect.

Hamilton Insurance Group

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.

Acappella Syndicate 2014 is the third major Lloyd’s syndicate to be placed into run-off this month, following similar decisions by Pioneer Underwriters and Vibe Syndicate Management.

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.

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous article:
Hiscox pulls out of casualty reinsurance

Global specialist re/insurer Hiscox has announced its intention to cease writing casualty reinsurance business, due to “ongoing, challenging market conditions.”...