Marlborough Underwriting Agency Ltd

Current Syndicates - 62, 744, 1047, 1242
Other Syndicates of Interest

17 August 2000CGNU to purchase minority shareholding in Marlborough Underwriting Agencies Ltd
CGNU Plc ("CGNU") has reached agreement, subject to contract and to Lloyd's approval, with the Blenheim Partnership ("Blenheim") to acquire Blenheim's 49% shareholding in Marlborough Underwriting Agency Limited ("Marlborough"). As a consequence of this transaction, Marlborough will become a wholly-owned subsidiary of CGNU. The consideration for this transaction is not material in relation to CGNU's net assets.

Angus Sladen and Jill Loveless, respectively managing director and finance director of Marlborough, have decided to resign their appointments in order to pursue interests elsewhere and will leave Marlborough shortly after the completion of the transaction. It is also the intention of non-executive chairman, Sir Patrick Sheehy, to resign. Clive Watson, currently the CGNU director of London Market, will be appointed as managing director of Marlborough, subject to Lloyd's approval.

CGNU currently provides in aggregate approximately 85% of the capacity of Lloyd's Syndicates 62, 1047 and 1861 managed by Marlborough and will continue to support these syndicates for the 2001 year of account.
10 November 1999Syndicate 1047 - Continuity of Interest
Marlborough Underwriting Agency has advised that Robert Wasey, who currently underwrites his entire premium income limit of £175,000 on Syndicate 1047, will be reducing his overall limit and therefore his line on the syndicate for 2000 to £156,000.

This is a direct result of the RAC model increasing the solvency ratio on the syndicate as a result of a further year of data being introduced.
01 September 1999Syndicate 744 - latest 1998 forecast result
Marlborough has released details of its 2nd Syndicate Quarterly Return containing a forecast for the 1998 account of a loss between 42.5% - 47.5%.

Due to the severe deterioration of the figures, Andrew Baugh, the active underwriter of Syndicate 744, arranged an independent review of the reserve estimates, which has been carried out by the Syndicate's actuaries, Lane Clarke and Peacock, and incorporated into the latest forecast.

Andrew Baugh has confirmed that he is actively seeking to purchase stop loss reinsurance in order to cap this potential loss.
10 May 1999Marlborough apply to Lloyd's for new Syndicate 1861
Marlborough have applied to Lloyd's for consent to establish a new Corporate Syndicate, which will be supported solely by Commercial Union Corporate Member Ltd (CUCML).

Commercial Union acquired 51% of Marlborough Underwriting Agency (MUAL) in August 1997. CUCML was set up for the 1998 year of account to support the MUAL managed Syndicates, and for the 1999 year of account provides 50% of the aggregate capacity on the existing four Syndicates.

In January 1999, CGU Plc announced their decision to cease underwriting operations in the IUA (formerly ILU) and transfer its portfolio of business into Lloyd's. This will be achieved by the creation of a new marine Syndicate 1861 which will commence underwriting for the 2000 year of account.

The principal classes of business to be written are Hull, Cargo & Specie, Energy, Liability & Excess of Loss.

It is currently anticipated that approximately 98% of business will be accepted from Lloyd's brokers, with the balance coming from unassociated agents. It is also expected that in excess of 75% of the business to be written by Syndicate 1861 will be business previously underwritten by CGU.

Marlborough have run a comparison of any contracts that their existing Marine Syndicates 62 and 744 share with the CGU and do not anticipate any problems with clients and their brokers switching their business to the new Syndicate. The Agency have also confirmed that they will periodically review the new Syndicate to ensure its full and committed compliance.
29 January 1999Trevor Johnson Steps Down from Marlborough Board
Trevor Johnson stepped down from the Board of Marlborough at the end of 1998. However, he will continue as a consultant involved in syndicate monitoring.
20 January 1999CGU Announce Lloyd's Underwriting Link
CGU Plc have issued a press statement, dated 20th January 1999, confirming that Heads of Agreement has been signed with its subsidiary Marlborough Underwriting Agency Limited (MUAL), to transfer its London market marine business into a new wholly CGU capitalised Lloyd's syndicate managed by MUAL. As part of this arrangement CGU will increase its shareholding in MUAL to 60%.
Angus Sladen, MD of MUAL, has confirmed that the agency will manage 3 marine syndicates, (including the new entity, which will start writing business from October 1999), for the 2000 account. John Henderson, currently liability underwriter with CGU London market, will become the underwriter of the new syndicate.
02 December 1998Syndicate 744 1997 deterioration
There has been a considerable deterioration in the 1997 account figures for this syndicate. The latest estimate for its result is a loss, after syndicate and personal expenses, of 7.5% to 12.5%. Previously, the estimated result was 0 to 5% profit.

 
 

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