15th Oct 2013 08:40
LONDON (Alliance News) - Hampden Underwriting Tuesday said it has increased its underwriting capacity through the GBP700,000 acquisition of two further limited liability members of Lloyd's.
Hampden, which provides investors with a limited liability direct investment into the Lloyd's insurance market, said the acquisitions, Nomina No 035 LLP and Nomina No342 LLP, have a combined 2013 underwriting capacity of GBP1.7 million, compared to its own capacity of GBP12.8 million.
Hampden will also contribute a further GBP600,000 to its funds at Lloyd's in order to support its enlarged underwriting activities.
The new limited liability members participate in a spread of Lloyd's syndicates similar to Hampden Underwriting's own participation.
Meanwhile, Hampden Underwriting said it has, as expected, renewed for 2014 its annually renewable collateralised quota share reinsurance agreement commencing for the 2013 year of account.
"The quota share reinsurance arrangement is an important part of our broader funding strategy going forward, enhancing our ability to actively grow our underwriting capacity and pursue further acquisitions," Nigel Hanbury, chief executive, said in a statement.
Hampden said it expects the two new limited liability members to be included in the renewed reinsurance agreement for the full year 2014.
Quota share reinsurance is a form of proportional reinsurance in which the reinsurer assumes an agreed percentage of each insurance being reinsured and shares all premiums and losses accordingly with the reinsured.
Hampden Underwriting shares were Tuesday quoted at 130.50 pence, up 0.50 pence, or 0.4%.
By Samuel Agini; [email protected]; @samuelagini
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