Skuld is to pull its hull and offshore energy insurance syndicate business out of Lloyd’s of London.
It will instead underwrite the cover using the corporate paper of mutual Skuld Assuranceforeningen through Skuld UK and SMA in Oslo.
Oslo-based Skuld said the move from the Lloyd’s to the corporate market is part of a wider strategy to continue to diversify out of its main protection and indemnity business and streamline its insurance offerings.
But it also comes after a succession of heavy losses run up by Skuld since it went into the Lloyd’s of London insurance market as syndicate 1897 in 2011 to build a hull and machinery capability.
The Standard Club, which entered Lloyd’s at a similar time to Skuld, put its Lloyd’s business into run-off last year.
The Lloyd’s of London market had approved Skuld’s business plan to trade on in 2019 but it appears the insurer has taken the view it is better off out of the market.
Syndicate 1897 will decline future business from July this year and handle existing Lloyd’s business “in house.”
Skuld chief executive Stale Hansen said the move will bring efficiency and cost benefits. “In recent years we have expanded out offering beyond the traditional P&I to include marine and energy insurance underwritten through syndicate 1897 at Lloyd’s and Skuld Marine Agency,” he added.
“With the establishment last year of Skuld UK, operating as a fully authorised branch of Skuld/SMA, we are now able to reorganise Skuld to better deliver our highly regarded insurance services through an even more streamlined structure and improve operational synergies.”
