QBE To Realign Lloyd’s Syndicates, Increase Capacity

Australia’s QBE announced that it plans to rearrange its interests in several Lloyd’s syndicates managed by its wholly owned subsidiary Limit plc, and will increase their underwriting capacity.

The syndicates have a combined capacity of approximately $1.2 billion for the current year, and QBE’s plans to increase that amount indicate the rising premiums levels and increased opportunities it expects to see in the Lloyd’s market.

Syndicate 386, which writes non-U.S. liability coverage will see a substantial increase, as it’s been highly profitable lately. However, QBE plans to withdraw from Syndicate 318, a property and aviation underwriter.

QBE indicated that it expected to earn around $940 million in premium income this year, and forecast a 10 percent increase for 2002 to over $1 billion.