CHAUCER REACHES DEAL WITH HERITAGE OVER SYNDICATE 1245

Lloyd’s insurer Chaucer has reached an agreement with Heritage Managing Agency to fold Syndicate 1245 into Chaucer’s Syndicate 1084. From the beginning of this year Syndicate 1084 will assume the reinsurance to close of Syndicate’s 2002, 2003 and 2004 Years of Account, for a premium of £42.5m. Chaucer said that the deal entailed a departure from normal reinsurance-to-close practice in that it gave the reinsured members of Syndicate 1245 a profit share deal, under which they benefit from a premium refund if the run-off of liabilities proves favourable. Syndicate 1084 was one of the victims of the North American casualty market, while YoA 2002 also included some problem surety business. Two syndicate staff at Heritage will join Chaucer to help administer the run-off.