The first of three capacity auctions was completed today. A total of £124m of capacity changed hands, so volumes were up 65% on last year’s first auction. Indeed, this was the largest auction of capacity by volume since 2004. Despite the increase in liquidity, prices generally held up. At 36.2p, the Argenta all capacity index was up on auction one last year, when it stood at 34.8p. It is down very slightly on the 36.3p average recorded across the three auctions last year. The all capacity index is based on all capacity owned by third party members of Lloyd’s and gives a more accurate picture of pricing trends than the average price paid to acquire capacity, which can be distorted by large trades on lower valued syndicates.

Members subscribed for a total of £695m of capacity, with £153m of capacity tendered for sale. 18 syndicate were traded, although two more had capacity tendered for sale without attracting any buyers. The schedule of results is attached here.

The second auction will be held on Wednesday 28th and Thursday 29th October and the final auction on Wednesday 4th and Thursday 5th November.