The merger between Canopius Syndicate 4444 and AmTrust Syndicate 1861 has created a top-five speciality insurer with a strong presence in the marine market at Lloyd’s of London.
The Canopius Group announced that the deal was concluded last week.
Canopius is regarded as one of the more ambitious speciality insurers in the marine business lines. Its acquisition of AmTrust Syndicate 1861 will create a single syndicate generating annual premiums of more than $2.2bn, operating under the management of Canopius Managing Agent.
Marine is a major part of the Canopius speciality business. AmTrust has been winding down its presence in the sector since it withdrew AmTrust Syndicate 1206 from marine last year.
According to Canopius Syndicate 4444’s 2018 annual report, its marine, aviation and transport division generated premiums of £183.5m ($226m) last year but ran at an underwriting loss of £10.9m.
AmTrust Syndicate 1861’s annual report shows its marine, aviation and transport division earned premiums of £52.2m and ran at an underwriting loss of £10.6m.
The Canopius marine team is headed by Charles Fernandez, who is also chairman of the International Union of Marine Insurance’s legal and liability committee.
Canopius operates mainly in the hull and machinery, cargo and marine liability insurance lines. While many marine insurers have been withdrawing from the marine market, it is regarded as one of the more ambitious providers to the sector.
The continued withdrawal of many marine insurers has also raised hopes that a recent gradual hardening of rates can continue.
Canopius chairman Michael Watson described the acquisition as a “transformational step for the company”.
“The key to our success lies in the quality of our people and I welcome our talented new colleagues from AmTrust at Lloyd’s. Together we will strengthen the product and service proposition we offer our highly valued clients and distribution partners,” he said.
