Acappella was managed by Pembroke Managing Agency, which was recently acquired by Hamilton Insurance
Bermuda-based Hamilton Insurance Group has placed Acappella Syndicate 2014 into run-off with the business ceasing to write business with immediate effect.
The insurance group concluded that the third-party-capital-supported Lloyd’s syndicate wasn’t likely to give enough returns.
Acappella was included in Hamilton Insurance’s recently acquired Pembroke Managing Agency platform at Lloyd’s, which has been renamed as Hamilton Insurance UK.
Having started operations as Special Purpose Syndicate 6110 in 2012, Acappella is said to have become the first SPS in the history of Lloyds to convert to an independent standalone in 2014.
Hamilton Insurance CEO comments on Acappella
Hamilton Insurance Group CEO Pina Albo said: “As we completed the capital raising process at Lloyd’s, we concluded that Acappella was unlikely to produce an adequate return on capital.
“As conscientious stewards of both our and third-party investors’ capital, and with our focus on underwriting profitability, it was determined that the best course of action would be to discontinue the business.”
Hamilton Insurance is engaged in underwriting speciality insurance and reinsurance risks through its fully-owned subsidiaries.
Recently, the insurance group completed the acquisition of Ironshore Europe DAC (IEDAC), an Ireland-based carrier alongside Pembroke Managing Agency from Liberty Mutual Group.
Founded in 2010, IEDAC is authorised to write re/insurance business across the European Economic Area (EEA). The insurance carrier is also listed on the US NAIC International Insurer Directory, which enables it to provide capacity in the US.
Pembroke Managing Agency, which was created in 2004, is engaged in underwriting a portfolio of speciality insurance products through Syndicate 4000 at Lloyd’s, prior to its acquisition. The speciality insurance products offered by Pembroke Managing Agency include financial institutions, global property and professional liability.
At the time of the acquisition, Hamilton Insurance said that the complementary nature of Pembroke and IEDAC’s business will accelerate its efforts to create a leadership position in speciality insurance and also its ability to expand its reinsurance franchise.
The Bermuda-based group expects IEDAC to give it flexibility and strategic optionality, particularly for its growth initiatives for Europe and the US.