PI insurance firm plans to increase Lloyds capacity

One Bermuda-based professional indemnity insurance firm recently remarked that it is planning to increase its Lloyds of London syndicate 33’s capacity to a total of £1 billion for the coming year, in order to not be caught unprepared in the event of a market turn.

Commercial insurance experts Hiscox Ltd increased its capacity by £100 million, after anticipations of coming improvements to market conditions.  Reinsurance lines were specifically highlighted for improvements, a Hiscox spokesperson said, which prompted the swift action on the part of the business liability insurance provider.

The Hiscox spokesperson also said, in a prepared statement, that the insurer would be submitting a final business plan to Lloyd’s later in 2011 for multiline syndicate 33.  However, this plan may involve reductions in capacity formerly predicted to be higher in the event that the coming hurricane season has no discernible effect on the insurance market.

The Bermuda based firm manages more than just syndicate33, however. The special purpose syndicate 6104 is also under Hiscox management, which it maintains for third-party providers of capital, but that syndicate’s capacity will not budge from its £37 million figure for the coming year, according to the company.

Hiscox additionally provides capital for and manages syndicate 3624 as well.  The syndicate provides underwriting for property and casualty business in the US, in addition to some technology and media quota-share business.

Hiscox has yet to announce any plans for changes in capacity for that syndicate for the 2012 year, however.  Industry experts believe that the insurer may choose to adjust capacity for all three of its syndicates in the wake of the hurricane season for the current year in order to formulate a more accurate reading of their outgoings.

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