OMNI TO MANAGE LLOYD’S SYNDICATE 376

Run-off manager Omni Whittington has been confirmed as the manager of Lloyd’s syndicate 376 through a novation concluded with the previous managing agent, Talbot Underwriting. The syndicate has nearly £500m of claims reserves but the capital that originally supported the syndicate has been exhausted. Losses at December 31 last year totalled £234m and are now being met by Lloyd’s New Central Fund. Omni Whittington won the order to run off the syndicate’s account at the end of last year following a competitive tender. Until now, the company has been handling the run-off via an outsourcing arrangement, and Talbot Underwriting retained formal responsibility as managing agent. Michael Carpenter, chief executive of Talbot, said the run-off was one of the largest in the Lloyd’s market and needed the attention of a run-off specialist. Omni Whittington now has 45 staff dedicated to the syndicate’s run-off. The manager said it expected the Lloyd’s market to see more syndicates enter run-off in the coming years but “it is unlikely that anything will match the size and complexity of syndicate 376”. Talbot Holdings was established in Bermuda in 2001 by the former management of Lloyd’s agency Alleghany Underwriting Ltd, backed by corporate investors. Syndicate 376 stopped underwriting at the end of that year. Talbot Holdings runs the wholly owned syndicate 1183 with a capacity for 2004 or £287.5m. The group’s total premium income increased to $438m last year from $289m in 2002, and pre-tax profit increased to $19.8m from $11.9m.