ArgoGlobal pulls Syndicate 1200 from Asia, most hull underwriting globally to improve profitability

Lloyd's insurer and member of Argo Group, ArgoGlobal, has revealed its plans to exit Syndicate 1200 underwriting operations in Asia in a bid to "improve profitability" of the overall business.

The company also announced plans to exit most of its hull underwriting business within Syndicate 1200, saying that its recently recorded combined ratios are also "unsustainable". The Asia business accounted for less than 3 percent of Syndicate 1200 gross written premium in 2018.

ArgoGlobal said all existing policies remain valid and the company will manage claims handling through its London operation.

“This is another step in our overall drive to increase profitability,” said Matt Harris, group head of international operations. “It is important to note; however, we are fully committed to the remaining marine classes we insure and insuring hull on non-Lloyd’s platforms.”

“Over the past two years, we’ve taken deliberate steps to improve profitability in Syndicate 1200 and ultimately enhance shareholder value. We’re executing this through underwriting actions, increased rates, and a focus on digital technology to improve underwriting margins," he said.

"The ArgoGlobal Syndicate 1200’s Asia business recently recorded combined ratios are unsustainable and, whilst we still see growth opportunities in the region, we need to prioritise our efforts on profitable growth in other markets.” said Matt Harris, group head of international operations.

Syndicate 1200 hull underwriting represented less than 3 percent of gross written premium in 2018. The company said it will, however, consider writing certain hull risks on a limited basis through Syndicate 1200 from Dubai.

Argo noted the move will have no impact on its Ariel Re Syndicate 1910 business, including its Hong Kong-based renewable energy business.

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