ProAssurance to back new Lloyd's syndicate

Specialty insurance company ProAssurance Corporation will be the majority capital provider to the proposed new Syndicate 1729 at Lloyd's of London. The syndicate will be led by Duncan Dale, a reinsurance underwriter with more than 30 years of experience in Lloyd's and the London insurance and reinsurance market.

Syndicate 1729 has been granted approval in principle by the Franchise Board of Lloyd's of London and must now complete the customary regulatory and compliance processes before its planned inception date of January 1, 2014.

ProAssurance is committing up to $60 million of capital for the first year of operations of the syndicate, with a six-year commitment of up to $200 million through 2019. ProAssurance's commitment represents 51 percent of the capital to be committed; remaining capital will come from third parties, including private names and other corporate members. ProAssurance also expects to lend underwriting support to the syndicate for international healthcare liability opportunities, as needed.

“We are excited about our association with this venture," said Stancil Starnes, the chief executive of ProAssurance. “Participating in this syndicate will allow us more direct and efficient access to international healthcare professional liability opportunities as well as provide a measured degree of diversification with a trusted partner. We also expect our Medmarc subsidiary to benefit as it works with the syndicate to provide policies to medical technology companies that are expanding outside the US.”

Lead Underwriter Dale said: "ProAssurance's financial strength, long-term commitment, strategic vision and exceptional expertise will bring real benefits to the Syndicate. We're excited about the opportunities this new venture opens up for ourselves, ProAssurance and the Lloyd's Market."

Asta Managing Agency will assist in the establishment of the syndicate and will provide management and governance in the initial years of operation.