Greenwich Group - Syndicate News

Brockbank Syndicate Management Ltd

	27 October 2000	XL to merge its two Lloyd's Managing Agencies Bermudan insurer XL Capital is to merge its two Lloyd's managing agencies as part of a substantial reorganisation of its business that will see 120 redundancies worldwide. Brockbank Syndicate Management and Denham Syndicate Management are to merge to form a new managing agency, XL Brockbank, with a capacity of approximately Ł524m, or 5% of the total market. Brockbank currently manages two composite syndicates: 588 (Metcalf) and 861 (Reith) and a parallel Corporate Syndicate 1209, which accepts business via a split stamp agreement from the other syndicates. Denham, which was acquired by XL subsidiary NAC Re in August 1998, manages the general non-marine Syndicate 990 (Matson). Brockbank said plans to merge the two agencies were still in embryonic form, and have yet to go to the regulators. A new management structure has not been worked out, nor has a decision been made on whether a new building would be sought, however, Peter Matson will remain active underwriter of Syndicate 990. Taken from Post Magazine - 19th October 2000
	10 December 1999	Syndicate 253 to cease underwriting from the end of 1999 Lloyd's have granted consent for Syndicate 253 to cease underwriting with effect from the end of the year. From 1st January, 2000 Martin Reith, the Active Underwriter of Syndicate 861/1209 which underwrites Motor business in consortium with Syndicate 253/2253, will be appointed run-off manager.
	19 November 1999	Brockbank dispose of Motor Operations Brockbank has advised that the sale of Admiral Insurance Services Ltd was completed on 16th November 1999. They have also advised that the separate buy-out transaction involving the broker based Zenith operation has been concluded. Consequently, subject to Lloyd's approval, Syndicates 253/2253 will cease underwriting at 31st December 1999 and Brockbank proposes to serve unconditional notice thereafter on all Members of Syndicate 253/2253 to terminate their Agency Agreements. Brockbank has also confirmed that, following the disposal of these Motor operations, Syndicates 861/1209 will stop underwriting motor business for the 2000 year of account (although as previously advised, there will be no reduction in the overall reduction in the Syndicate's capacity for 2000).
	25 October 1999	Brockbank Property Consortium proposal update Brockbank have advised that due to aggregation constraints, the proposed consortium split advised in September will now be revised to Syndicate 861/1209 - 85%: Syndicate 588/1209 - 15%. Brockbank further advise that they will reconsider a Syndicate merger for the 2001 Account.
	08 October 1999	Disposal of Admiral Brockbank Underwriting Ltd. ("BUL") hold an equity interest in the specially formed buy-out vehicle, Newco, which will purchase the shares in Admiral. As there are some Directors who are common to the Boards of the Managing Agencies and BUL and, therefore a possible conflict of interest, Lloyd's have recommended that Brockbank ensure that all capital providers of Syndicates 253, 2253, 861 and 1209 are aware of this aspect of the proposed sale of Admiral. The Managing Agents have decided to cease underwriting Motor business and sell the shares they hold in Admiral as agent for the Names. BUL, along with the management shareholders in Admiral, have agreed to accept shares and unsecured subordinated loan notes in the private company buyer Newco. BUL have agreed to this structure, requested by the buyer's investors to facilitate the transaction, because it is in a position to take a higher risk on the ongoing business and is prepared to do so. As BUL holds its B shares in Admiral in its own account, it will own its shareholding in Newco for its own account and will not be accountable to any members with regard to any associated profits or potential proceeds on disposal.
	08 October 1999	Mark Brockbank resigns as Member of Lloyd's Mark Brockbank has resigned as a Member of Lloyd's and will not therefore participate on Syndicates 588 or 861 for year 2000. He will remain as Chief Executive Officer of the Brockbank Group and a member of the Lloyd's Market Board. Dornoch Ltd. has entered into a bilateral arrangement with Mr. Brockbank to acquire his capacity on Syndicates 588 and 861 during Auction 6. His current participations are Ł400,000 and Ł1,098,952 respectively and the bilateral offered for his capacity on both Syndicates is 8p/Ł. Dornoch Ltd. has reached an agreement with LIMIT (No. 4) Ltd. to acquire the rights it holds to participate on the 2000 Account of Syndicate 861 as follows:- Ł15m at 8p/Ł. Dornoch reserves the right to participate in the Auction at prices different to that outlined above and to consider other bilateral deals. Dornoch is the sole member on Syndicate 1209 which underwrites in parallel with Syndicates 588 and 861.
	16 September 1999	Property Consortium proposal for Syndicates 588, 861 and 1209 Brockbank is awaiting Lloyd's consent to underwrite Syndicate 861/1209's and 588/1209's property accounts in consortium for 2000. Jonathan Tay, Deputy Underwriter of Syndicate 861/1209 resigned unexpectedly in June this year. Richard Housley, North American property class Underwriter also resigned and will join the same company as Mr. Tay. Rather than replace these individuals, Brockbank has decided on this consortium arrangement which they feel makes sound commercial sense as: It should lead to reduced administrative costs and burdens; it is more economical than external recruitment and it will not affect either Syndicate's income forecast. Syndicate 588/1209 has always underwritten significantly less property income than 861/1209 but in November, 1998 recruited David Leathem to develop this account. The Syndicate expects to underwrite Ł7.5m of income for 1999 but income forecasts for 2000 have increased to Ł12.5m. It is proposed to split 2000 risks as follows: Syndicate 861/1209 - 75%: Syndicate 588/1209 - 25%. Finally, although a number of Syndicate 588/1209's and 861/1209's accounts are written in consortium, it is the intention of Brockbank Syndicate Management Ltd. to reconsider a Syndicate merger for 2001.
	09 September 1999	Brockbank gives notice of withdrawal from Motor Market Brockbank has announced its intention to cease underwriting motor business after 31st December 1999. Heads of Agreement have been signed for separate Management Buy-outs by the respective management teams of Admiral and Zenith, Brockbank's two motor operations. The transactions are subject to contract and all necessary regulatory approvals. As a consequence, application has been made to Lloyd's by Brockbank Personal Lines Ltd to cease underwriting on Syndicates 253 & 2253 and no motor business will be written by Brockbank Syndicate Management Ltd into Syndicates 861 & 1209 from the 2000 year of account.
	28 July 1999	Brockbank submits application to own an interest in Sextant Brockbank Underwriting Limited (BUL) has submitted an application to Lloyd's Authorisations Department to own a 25% shareholding in a new service company, Sextant International Limited (Sextant). BUL is the immediate holding company of Brockbank Syndicate Management Ltd. This is a joint initiative between Dr. Wolfgang Weihtag, an individual who has been involved in introducing business to Syndicate 861/1209, and an Italian broker with whom the Syndicate deals. These external shareholders will own 55% and 20% interests respectively. BUL has the option to acquire Dr. Weihtag's shareholding at the end of a ten year period. Sextant will operate from France and Hamburg and will be managed by Dr. Weihtag for the purpose of generating yacht insurance for Syndicate 861/1209. Projected premium income for year one through Sextant is $1.4m, rising to $5m in year four. It is intended that BUL will finance its own shareholding in Sextant. The Members of Syndicate 861/1209 would not, therefore, have any beneficial interest in the shareholding.
	30 June 1999	No merger for Syndicates 588, 861 and 1209! Due to uncertainty regarding the future of the Motor account, Brockbank have decided not to proceed with the merger of Syndicates 588, 861 and 1209 for year 2000. They will reconsider the merger next year.
	17 March 1999	Brockbank propose Syndicate merger An application has been made to Lloyd's to merge Syndicates 588, 861 & 1209 for the year 2000 to form an enlarged Syndicate 861. Brockbank also propose to increase the Managing Agents fee and level of profit commission.