Argenta to shake up Australian business after exit from Lloyd’s Asia

Argenta Underwriting Asia (AUA) is to cease writing new and renewal business through Lloyd’s Asia platform in Singapore with the unit’s Australian business expected to be restructured. The company's CEO expressed disappointment over the current underwriting conditions that he believes “do not offer us the opportunity” to continue further in this market.

The decision follows a “strategic review” of the business written through the Singapore coverholder by Lloyd’s managing agency,  Argenta Syndicate Management Limited (ASML), a subsidiary of reinsurance giant Hannover Re.

The board of  ASML has decided to reallocate capacity to other underwriting opportunities worldwide, including  AUA’s branch offices in Australia, which the company said are unaffected by the decision in respect of the Singapore business. In due course, it is expected that Argenta’s Australian operations will be restructured to report directly into its London headquarters subject to all necessary regulatory and Lloyd’s approvals.

Argenta’s Group CEO Andrew Annandale (pictured) said: “I am naturally disappointed that current underwriting conditions do not offer us the opportunity to build upon what we have achieved to date in Singapore in respect of the direct business available to us.

“We must focus our capacity on those areas of our business where rates and conditions continue to strengthen. I would like to take this opportunity to thank all of our Singapore stakeholders, including our loyal team members, for their unswerving support over the last thirteen years – the local leadership team will do all that it can to minimise the impact that this strategic change will have.”

AUA's principal officer Scott Sykes, added: “We will run off the existing Singapore risks in an orderly fashion, working closely with our various stakeholders including Lloyd’s Asia and all of our regional customers and supporting brokers. To the extent that it fits within our wider risk appetite certain regional business may be written through our Sydney branch in the future or repatriated to Syndicate 2121 in London.”

Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.