AMLIN QUITS CREDIT INSURANCE, NAMES RISE AGAIN

UK-based insurer Amlin is pulling out of the credit insurance market, where it had a 4% market share in the UK — equal to about £13m a year, based on statistics from the Association of British Insurers. Amlin is also reported to be planning a new syndicate funded entirely by private capital. Amlin CEO Charles Philipps said that “getting reinsurance for credit insurance is becoming more difficult” and that it had been difficult to turn a profit on a business that remains dominated by credit insurance specialists Euler-Hermes, Coface and Atradius. He told the Financial Times that “this is not a big part of our business, and taking a long-term view we think it will be extremely difficult to make a return”. Amlin was reported to be in “early-stage” discussions with other credit insurers to see if existing policies can be transferred over when renewed. Meanwhile, Amlin is also planning a new Lloyd’s syndicate with up to £50m of private capital, according to a report in today’s UK Daily Telegraph , citing unnamed sources. The return of the Name is seen as a consequence of a shortage of corporate capital and the difficulties currently associated with raising capital on the equity markets. The participation of private capital in Lloyd’s declined for many years after losses in the 1980s pushed many Names into bankruptcy. The new syndicate was reportedly going to focus on catastrophe cover, protecting mainly against hurricanes and natural disasters.