Greenwich Group - Syndicate News

Creechurch Underwriting Ltd

	13 March 2000	Syndicate 892 - 1997 Account RITC Creechurch had previously written to capital providers regarding their efforts to secure a third party syndicate RITC solution for the 1997 account. Their previous most competitive indication implied a risk premium payable (including IBNR) of Ł2.5m. After considering a number of options, the Board has agreed an RITC premium payable to the 1998 year of account on the following basis: 1 A stop loss policy has been placed in respect of the 1997 account, which provides sufficient down-side coverage to protect the 1998 names from any foreseeable deterioration in respect of 1997 liabilities. 2. A large proportion of the stop loss premium will be allocated to an "experience account". If the experience account remains in surplus, this will be an asset of the 1998 year of account, which may be of benefit when it comes to closing the 1998 year of account. 3. The RITC premium includes provision for a premium payable to a third party Syndicate in respect of the 1997 liabilities, which is likely to be required during the 1998 year of account RITC. The total cost of this solution is Ł2.04m which represents an improvement on the best alternative third party RITC premium. It has been noted that virtually all1998 Members also participated in the Syndicate for 1997. As a result, the Members who did not leave the Syndicate in 1997 have the opportunity to benefit from the experience account surplus if it arises. The result for the year, before Members' Agent's fees, is a loss of -41.3% of capacity for individual Members or -41.9% for Corporate Members. This compares to the forecast range of -30.9t% to -33.9%. The reason that the loss has fallen outside this range is due to third party RITC arrangements.
	21 January 2000	Syndicate 892 to leave 1997 year of account open Creechurch Underwriting Limited has notified capital providers of its decision to leave the 1997 year of account of Syndicate 892 open for a further 12 months. This decision follows discussions with various brokers who have sought comparive quotations for the RITC from a wide range of potential markets. Having considered these quotes, the board has decided that they are uncompetitive as risk premiums were excessive. They are optimistic that 1997 will be able to close with 1998 at 31st December 2000.
	14 July 1999	Holdsure 892 RITC goes to Crowe 963 Lloyd's have now approved the proposal for the 1996 reinsurance to close of Motor Syndicate 892 ("Holdsure") at 31st December, 1998 into Syndicate 963 and for this transaction to be processed as premium into the 1997 year of account of Syndicate 963. The proposed RITC would only result in a minimal increase in the risk based capital requirement of Syndicate 963 and therefore no additional Funds at Lloyd's are required.
	23 March 1999	Syndicate 963 to reinsure 1996 Account of Syndicate 892 Crowe Syndicate Management Ltd. have recently been successful in the tendering process for the Reinsurance to Close of Syndicate 892 (Holdsure Motor). The premium payable amounts to Ł16,200,000 and Crowe are currently in discussion with Lloyd's regarding the processing of the contract into the 1997 Year of Account.