W. R. Berkley Syndicate Management Limited, a unit of
W.R. Berkley Corp.
) has been authorized by the UK Financial Services Authority
("FSA") to act as a Lloyd's managing agent.
Lloyd's of London is an insurance market platform conducting
business in over 200 countries and territories around the world. It
is often the first to write new, complex and unusual risks. Here
members join together as syndicates to insure and reinsure risk.
These syndicates comprising individuals or corporate houses provide
resources, which back the risk on insurance policies.
Managing agents at Lloyd's sponsor and manage these syndicates.
They are in charge of the syndicate's business strategy and the
hiring of underwriters. Managing agents can choose to operate more
than one syndicate.
W. R. Berkley Syndicate Management Limited will look after the
operations of W. R. Berkley Syndicate 1967 and will replace the
earlier managing agent, Whittington Capital Management. The name W.
R. Berkley Syndicate 1967 is taken from the year Berkley was
Following its authorization, Berkley now has the global reach
and experience to provide insurance solutions pertaining to Lloyd's
platform. The Syndicate will write a wide variety of businesses
that include intermediate short-tail property, accident and marine
business, where Berkley has already made a name for itself.
The new Syndicate will commence underwriting from June 1,
For 2011, Syndicate 1967 reported a profit of $1.93 million,
despite record insured losses arising from catastrophe events, with
claims in excess of $100 billion. Against the backdrop, the
syndicate reported favorably, with a claims ratio of 52.8% and a
combined ratio of 98.6%. The Syndicate had its second full year of
operation in 2011, after it started underwriting risks in June
Syndicate capacity is totally provided by W.R. Berkley Corp.
The Syndicate's capacity for 2012 is £120 million. In 2012,
the Syndicate expects to expand its underwriting teams in each of
the property, marine and accident line of businesses.
The Lloyd's market is witnessing an increase in insurance rates,
especially in operating lines where Berkley has a strong
presence. Berkley's Syndicate expects to take advantage of
Other insurance companies who have Syndicates at Lloyd's include
XL Group plc
The Travelers Companies, Inc.
Berkley currently retains a Zacks # 3 Rank, which translates
into a short-term Hold rating. Considering the fundamentals, we are
also maintaining our long-term Neutral recommendation on the
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