Cavell to run-off Syndicate 2 exposures

Cavell Managing Agency Ltd, a subsidiary of insurance run-off specialist, Randall & Quilter, will take on the management of a new Lloyd’s syndicate, 3330 which take on £122mn of gross reserves by providing a reinsurance to close (RITC) facility to Syndicate 2 for the 2001 and 2002 underwriting years, finally giving closure to the Names who underwrote on the Syndicate. The 2001 year had been left open primarily because of the uncertainty of the Syndicate’s World Trade Centre related aviation exposures. The new syndicate is 100% backed by the Advent Group, which had previously provided 45 percent of capacity on Syndicate 2 for both years. Syndicate 2 wrote predominantly marine, aviation and non-marine reinsurance as well as some direct marine insurance. The syndicate had significant losses in 2001 as a result of the attacks on September 11th and was still managing its exposure, particularly from the aviation book. According to Ken Randall, chief executive of Randall & Quilter, this is the first Lloyd’s RITC with which Cavell has been involved having been granted the necessary permissions by both the FSA and Lloyd’s. .