Allied World’s Syndicate 2232 Joins Lloyd’s Asia Platform

Allied World Assurance Co. Holdings Ltd said it was approved by the Monetary Authority of Singapore and Lloyd's Asia to register and operate a service company, Capita 2232 Services Pte. Ltd., with an initial focus on all classes of treaty reinsurance in the Asia/Pacific region as well as the Middle East and Africa.

"Allied World's brand was previously not well known in Asia and we felt being part of the Lloyd's brand and having a strong local presence would be an ideal way to raise our profile in this extremely important region," said Bruce Ford, vice president for international treaty of Allied World in Singapore, in an interview.

The new services company will underwrite exclusively for Syndicate 2232 as part of Lloyd's Asia platform, said Allied World. Singapore-based Lloyd's Asia is Lloyd's underwriting base in Asia, and it enables about 18 syndicates to write local and offshore business from Singapore.

"Lloyd's is also regulated by a number of important markets such as China, Australia and Malaysia, which give us a significant head start in those countries," said Ford.

Allied World, a Bermuda-based insurance and reinsurance group, is "very excited about the potential for growth in Asia/Pacific, the Middle East and Africa," Ford said. "We currently have limited exposure in these regions and new business is therefore noncorrelating with our existing exposures.

"There is an interesting mix of mature and fast developing markets, and a growing sophistication in the clients' requirements of their reinsurers and brokers," he said. Initial premium growth has exceeded expectations from the region.

Syndicate 2232, through its Singapore-based service company, will offer treaty products including property, casualty and specialty lines across the Asia/Pacific region from Australia and New Zealand to China, Japan, India and Pakistan, the Middle East excluding Turkey and Israel, and Africa, according to Allied World.

"Singapore has grown into the major hub for Asian reinsurance in recent years, and Lloyd's has been one of the driving forces for that change, along with the MAS which has been instrumental in attracting reinsurance companies through efficient but thorough regulation and tax incentives," said Ford.

Syndicate 2232 is managed by Capita Managing Agency Ltd, a subsidiary of the Capita Group plc, which is authorized by Lloyd's and the Financial Services Authority in the United Kingdom. It offers business classes in international property, general casualty, professional lines and international treaty reinsurance.

Capita 2232 Services is a wholly-owned subsidiary Capita Managing Agency.

In April 2009, Allied World opened its first Asia operation in Hong Kong to tap into regional growth, expanding with the group's services and products in the markets. The Hong Kong office was approved to operate insurance and reinsurance businesses (BestWire, April 28, 2009).

In December 2009, the insurance and reinsurance group also launched a branch in Singapore to conduct general business operations. The Singapore office is the hub for all classes of treaty business for the region, as well as direct insurance products in South Asia, with an initial focus on professional lines and casualty classes (BestWire, Nov. 13, 2009).

"Allied World's Singapore branch will continue to provide complementary products to our Lloyd's platform, including facultative and direct casualty, financial lines and heath care, larger capacity and specialty treaty products," said Ford. "We believe that the dual licenses give us added flexibility to meet the demands of our clients."

Allied World Assurance Co. Ltd. currently has a Best's Financial Strength Rating of A (Excellent).

(By Iris Lai, Hong Kong bureau manager: [email protected])