3 September 2019News

ArgoGlobal exits Syndicate 1200 underwriting in Asia

ArgoGlobal, the Lloyd’s insurer and member of the Bermuda-based Argo Group, will exit Syndicate 1200 underwriting operations in Asia and most of its hull underwriting business within the syndicate.

All existing policies remain valid and the company will manage claims handling through its London operation.

Matt Harris, ArgoGlobal’s head of international operations, said the group is committed to improving the profitability of Syndicate 1200 and enhancing shareholder value through its underwriting actions and focus on digital technology, and by increasing rates. But “the ArgoGlobal Syndicate 1200’s Asia business recently recorded combined ratios are unsustainable and, whilst we still see growth opportunities in the region, we need to prioritise our efforts on profitable growth in other markets,” said Harris.

ArgoGlobal’s hull underwriting business within Syndicate 1200 has similarly recorded unsustainable combined ratios, said Harris. “It is important to note, however, we are fully committed to the remaining marine classes we insure and insuring hull on non-Lloyd’s platforms,” he added.

ArgoGlobal will consider writing certain hull risks on a limited basis through Syndicate 1200 from Dubai, the company said, adding that there has been no change to its Ariel Re Syndicate 1910 business, including its growing Hong Kong-based renewable energy business.

The Asia business and hull underwriting each accounted for less than 3 percent of Syndicate 1200 gross written premium in 2018.