China Re owns Lloyd???s syndicate

China Re has become the first Chinese firm to own an underwriting syndicate from Lloyd’s of London, a first in the insurance market’s 326-year history.

The company has been working with Catlin since 2011 when they agreed to run a special purpose syndicate together. This vehicle will be converted to a full syndicate from January 2015 and is expected to underwrite GBP120 million of coverage, chiefly in reinsurance and managed by a subsidiary of Catlin, according to a report in the Telegraph.

“[T]he new syndicate will provide substantial benefits to the Lloyd’s market, including the potential for an increased flow of Chinese business and a greater understanding of Chinese risks,” said the firms in a statement. Syndicate 2088, which China Re will own from January, wrote GBP48.8 million in premiums last year and posted a loss of GBP100,000.

“Our long-term strategy is to increase our activities in the international markets, and we look forward to working with international clients and their brokers placing business in the Lloyd’s market,” said Li Peiyu, chairman of China Re.