AMTRUST AT LLOYD’S MAY STRENGTHEN RESERVES FOR SYNDICATE 2526

AmTrust at Lloyd’s has revealed it may need to strengthen reserves for the 2013 and prior years of account at Doré syndicate 2526. Syndicate 2526 is a specialist professional liability syndicate, writing professional indemnity, medical malpractice, directors' and officers' liability and financial institution business. AmTrust at Lloyd’s, which took over management of the syndicate from Asta in April this year, said it had carried out a review of the claims function of its three managed syndicates which had indicated a possible need to strengthen reserves at 2526. AmTrust said it had now decided to commission an external independent review of syndicate 2526 and its prior year claims reserves. The review is being undertaken by ReviewAudit And More Consultancy Limited (RAM), and is currently in progress. AmTrust said the review is expected to be completed by mid-October, and the outcome of the review, and subsequent consultation with the syndicate’s external actuaries, will determine the extent to which any reserve strengthening will need to be implemented. The syndicate commenced underwriting in 2004 and transferred to Asta in 2011. AmTrust acquired the service company employing the staff of the syndicate in 2012. Since then AmTrust has acquired capacity on the syndicate in the Lloyd’s auctions and has increased its share of capacity from an initial 16% to 99.5% of the syndicate capacity for 2015. In April this year, the syndicate completed its migration to AmTrust from Asta Managing Agency under a novation agreement.