Greenwich Group - Syndicate News

Duncanson & Holt Syndicate Management Ltd

	02 December 1999	D&H Update We understand from the LUAA that there is currently a 50/50 chance that Simon Spinney and George Lloyd-Roberts will continue to underwrite into the 2000 Account. A major U.K. company is carrying out due diligence work this week and if they proceed with the employment of Messrs. Spinney and Lloyd-Roberts it is not clear whether one, two or three of the existing Syndicates will go forward or whether the new employer will establish a completely fresh vehicle. Brian Theakston's Syndicate 1101 will continue for the 2000 Account. The Syndicate managers are talking to a major corporate backer in the hope of replacing the capacity lost through the withdrawal of UNUMProvident. Even if the talks come to nothing, the Syndicate will continue to trade with its Stamp reduced from Ł56m to Ł21m.
	29 November 1999	SHOCK DEPARTURE BY UNUMProvident Duncanson & Holt Syndicate Management Ltd. (DHSM) has, in the last few weeks, struggled to obtain new capital for its four Syndicates following UNUMProvident's decision not to back the Syndicates for 2000. This move took the market by surprise as it had been clearly understood that UNUMProvident would stand behind the Syndicates for the 2000 Account. This agreement, made as recently as 20th October, 1999, involved UNUMProvident guaranteeing capacity for Non-Marine Syndicate 55 (Ł34m out of a total capacity of Ł46m in 1999); Non-Marine Syndicate 1101 (Ł22m out of a total capacity of Ł54m in 1999); Marine Syndicate 1308 (Ł64m out of a total capacity of Ł90m in 1999); and Space Syndicate 1999 (Ł8.5m out of a total capacity of Ł15m in 1999). The U-turn was prompted by the deteriorating estimates for the Duncanson & Holt Syndicate Management's Syndicates. A statement from UNUMProvident said "recent deterioration in projected results of the Syndicates has led the company to this action, which will allow it to minimise and manage further costs and losses consistent with the related charge taken in its third quarter of this year". It is understood that the Duncanson & Holt Underwriters Board took this decision on 17th November after UNUMProvident had changed the articles for voting. Andy Ripley, Managing Director of DHSM, explained that "the one UNUMProvident member on the five-strong Board was given more votes, in effect the number of Directors plus two. This meant that the vote to pull the capital backing was won by six votes to four. The DHU board was emasculated". A statement issued to brokers and capital providers by the Managing Agency stressed the fact that the Board of DHSM had not agreed the late notice of termination of Managing Agents Agreements with D&H Underwriters. Andy Ripley commented that with the funds lacking, the only course of action would be to face reality and place the Syndicates in run-off. He further said that the Syndicates were in the process of being sold and Heads of Agreement had already been signed for Syndicate 1101. To date, UNUMProvident has provided approximately 75% of the capital of DHSM managed Syndicates and it was known that it was making an exit from the market next year. Earlier this year UNUM and Provident merged and made the decision to concentrate on disability insurance, its core business, simultaneously making an exit from its reinsurance operations in North America and Lloyd's. Apparently the insurer made a provision of approximately Ł128m in the third quarter to cover the run-off. Nearer to home, in September, DHSM ceased underwriting on Syndicate 957, placing its pooled reinsurance company, Duncanson & Holt Europe into run-off at the beginning of November. Lloyd's rules require Managing Agents to have the necessary risk-based capital in place by 26th November, however we understand that Andy Ripley is seeking some leeway from Lloyd's in view of these developments.
	07 July 1999	Ralph Sharp to remain on DHSM Board Ralph Sharp has agreed to remain on the Board of DHSM in a non-executive capacity.
	04 December 1998	Syndicate 1308 Syndicate Hit by Space Losses Simon Spinney's syndicate that writes space business with syndicate 1999 (D&H's specialist space syndicate) on a 50:50 split, as part of its overall account, will be affected by the projected 50% loss estimated for syndicate 1999's 1998 account. D&H have advised supporters of syndicate 1308 that its overall result is likely to be affected by about 4%.