Greenwich Group - Syndicate News

Chartwell Managing Agents Ltd

	20 April 2000	Chartwell agree RITC for 1997 and 1998 years of account The board of Chartwell Managing Agents Limited ("CMA") has announced that the 1997 and 1998 accounts of Syndicate 866 will be closed direct into another Lloyd's syndicate by reinsurance to close, as at 31st December 1999 and 31st December 2000 respectively. Quotations for a reinsurance to close, for the 1997 and prior accounts, were sought from the market through a Lloyd's broker who was also directed to seek quotations for a 100% quota share reinsurance, for the 1998 account, both to be effected at 31st December 1999. The syndicate received a number of indications, two of which ultimately became firm quotations. CMA has advised that the wording of the 1998 quota share reinsurance contract is such that there should be only minimal further movement to report next year, relating to the costs of closure including a nominal premium of Ł1 for the reinsurance to close contract. Following a review of the quotations, the Board of CMA has accepted those that were most competitively priced. The premium for the 1997 and prior accounts reinsurance to close is Ł24,812,000, whilst the premium for the 1998 account 100% quota share reinsurance contract totals Ł31,103,000. The impact on Members, of the acceptance of the 100% quota share reinsurance contract for the 1998 year of account, is that it needs to be funded shortly. This will result in the syndicate having to make cash calls on the 1998 account of 52.5% of stamp capacity, subject to final audit, in addition to calling the balance of the uncalled loss on the 1997 account, both payable on 20th June 2000.
	06 April 1999	Chartwell to make Cash Calls during 1999 Syndicate 866 The 1997 year of account is projecting a loss of between 31% and 38% of capacity. The Syndicate will make an advance cash call of 15% of stamp which will be due for payment on 30th June 1999.