Disclosure Items for May
Managing Agents wishing to vary the managing agency agreement for the forthcoming year of account are required to apply to Lloyd’s for consent to terminate the managing agents’ agreement with Syndicate members. Reasons for doing so vary, from an application to increases levels of fee or profit commission to seeking a merger of managed syndicates. Very often these applications are entirely precautionary, for example Beazley applies every year just in case it acquires enough capacity in the auction to effect a Minority Buyout. We think this is highly unlikely. This year, the most interesting developments are in respect of the two Canopius Syndicates 260 and 958, where Canopius may make Capacity Offers that could lead to Minority Buyouts. We are still in the very early stages of any negotiation and have little to report to members at this stage. We will report back if these discussions develop further.
The full disclosure document is available here