MALAYSIA’S LABUAN RE ENTERS LLOYD’S MARKET THROUGH CHAUCER

Malaysia-based Labuan Re is to enter the Lloyd’s market by underwriting capacity for ALIT via a quota share reinsurance arrangement. ALIT is a Lloyd’s corporate member that participates in Chaucer syndicates 587 (motor), 1084 (marine) and 1096 (non-marine). For the 2000 year of account ALIT has capacity of £74m, which will increase to £103m for the 2001 year of account. Labuan Re will make a capital commitment of £8m, enabling it to underwrite £20m of capacity for the 2001 year of account through the Chaucer syndicates. Chaucer said that the move reflected Labuan Re’s desire to diversify from its domestic market and develop its international portfolio. Labuan Re CEO Dzulkifli Salleh confirmed that “the investment allows us to participate in markets previously out of our reach”.