Kiln, a UK-based insurance and reinsurance underwriting group, has issued a letter of intent to merge two of its syndicates - 807 and 510, effective 1 January 2012.
Kiln has five syndicates at Lloyd’s, which handle a diverse portfolio of specialist risks.
Kiln’s largest syndicate, 510, comprises its property & special lines; marine & special risks; accident & health; aviation; enterprise risks and treaty reinsurance divisions.
Syndicate 807 underwrites similar lines of business, including treaty reinsurance, medical and property risks.
According Kiln, the Syndicate 807 will continue to operate fully, accepting new risks and renewals, and provide service to clients and brokers for the 2011 year of account.
Thereafter, all of the business lines that have been developed through 807 will continue to run through 510. All risks incepting from 1 January 2012 will be absorbed by 510.
Kiln group CEO Charles Franks said this decision is part of the consistent, long-term strategy for growth, which involves expanding its specialist product portfolio, enhancing the distribution network and improving the efficiency and productivity of its operations.
"By merging 807 with 510, we will create a much larger and more diverse syndicate, which will be better placed to take advantage of opportunities that arise when the market turns. The proposed merger will also simplify our structure and enable us to utilise better our capabilities. This will strengthen the business and improve its efficiency for the benefit of all our stakeholders," Franks said.
The transaction is subject to approval from names and regulators.