Greenwich Group - Syndicate News

Cox Syndicate Management Ltd

	15 March 2000	Change of Underwriter for 2001 - Nuclear Syndicate 1176 Cox Syndicate Management Ltd has announced that Michael Dawson has decided to resign as active underwriter of Syndicate 1176 at the end of this year. He will continue in his role as Chief Executive of Cox Insurance Holdings PLC. Lloyd's has granted their consent to Richard Pexton succeeding Michael Dawson as lead underwriter from 2001. Richard Pexton is active underwriter of Cox Dedicated Syndicate 1208, which currently underwrites 83% of the combined nuclear account underwritten in parallel with Syndicate 1176.
	05 October 1999	Cox liable for part of Japan nuclear accident Nuclear insurer Cox yesterday confirmed that it may be liable for up to Ł1m ($1.6m) as one of the insurers of the Japanese Tokairmura nuclear fuel reprocessing plant which exploded last week. Cox said it expects any claims to be under Ł1m as it only insures 1% of the total value of the plant. Most of the remaining cover is thought to come from a Japanese nuclear insurance pool which a German pool reinsures. The German companies cover 4.41% of the plants property / casualty risk and 10.68% of the liability risk. They expect to suffer losses of up to Dm95m ($50.5m). Estimates of the final cost of the accident vary, with commentators split over whether there will be substantial personal liability claims. It is thought that, immediately after the accident, the local population received a dose of radiation close to 10% of the normal yearly dose. Damage to the plant itself is thought to be modest although the building with have to be cleaned up. Most market commentators agree that the accident raises serious risk management issues, including to what degree an insurer should make sure its clients engage in good risk practice. The owner of the plant Sumitomo Metal Mining, saw its share price fall 19% last week to $4, amid market concerns about the level of compensation it may have to pay. The Japanese government is also legally bound to take over some of the compensation burden. The German pool provides cover for German nuclear power plants and has reinsurance agreements with similar pools in other countries. In 1998, premium income ran to Dm116m, compared with Dm123m in 1997. The loss ratio was 42% in 1997 and 15% in 1998. This was higher than other years and followed a number of US liability losses.
	10 September 1999	Cox consolidate The Board of L.G. Cox & Co. Ltd. has agreed in principle to transfer the management of all managed Syndicates to Christopherson Heath Ltd. from 31st October, 1999. Christopherson Heath Ltd. already manages Motor Syndicate 218 and is a fellow subsidiary of Cox Insurance Holdings Plc. In addition, Christopherson Heath Ltd. will assume ongoing management responsibility for Corporate Syndicate 1208 from Cox Managing Agency Ltd. As from the date of transfer, it is proposed to change the name of Christopherson Heath Ltd. to Cox Syndicate Management Ltd.
	28 July 1999	Mandatory Offer for capacity on syndicate 1176 Cox Dedicated Corporate Member Ltd (CDCM), as offeror, is proposing to make an announced auction offer (AAO) in Auction 3 on the 17th and 18th August 1999 to acquire all the prospective participations on syndicate 1176 for the 2000 year of account at a price of 50p per Ł1 of capacity. CDCM has not reserved the right to increase the price under the AAO.
	17 March 1999	Cox de-empts Nuclear Syndicate An application was made to Lloyd's to allow 48% de-emption of capacity on Nuclear Syndicate 1176 for the year 2000 Account. This has been approved on the understanding that parallel 'nuclear' capacity underwritten by Syndicate 1208 is de-empted by the same figure. This will have the effect of doubling the exposure of a Name to a single major nuclear disaster from a loss of some 260% to a loss of some 520%.