Lloyd’s underwriter Chaucer Syndicates is to launch a new Global Energy Practice which will include a dedicated City of London office.
Chris White, Head of Energy Practice for Chaucer Syndicate 1084, who will lead the new operation, announced the launch at an event attended by over 100 London market brokers.
Chaucer said the launch had come in response to “the growing demands and increasing technical sophistication of global clients and the development of integrated energy brokers worldwide”.
In a statement the firm said: “The Practice combines Syndicate 1084’s energy and engineering expertise with the specialist capabilities of Nuclear Syndicate 1176, underpinned with extensive business analysis, modelling, wordings and policy administration skills, to deliver an integrated underwriting platform for broker and client requirements.”
As part of the launch Mr White, revealed that the firm would be opening a new underwriting suite at Chaucer’s Head Office in Plantation Place, next month to provide energy brokers and clients with a dedicated office.
Mr White: “I would like to thank my market colleagues for their support and best wishes in setting up our new Global Energy Practice at Chaucer. We have established an excellent team, and with a dedicated underwriting suite, we look forward to developing further successful partnerships throughout the market.”
The launch comes at a time when the primary energy markets are deeply concerned with a series of major losses including the Maersk Gryphon loss in the North Sea in February with the market now saying the loss has exceeded the $1 billion mark.
There is talk of the physical property risk classes seeing rate hikes of 30% to 50% but energy liability classes are now in a situation where there are growing fears of a serious exodus of capacity.
Head of Franchise Performance at Lloyd’s Tom Bolt has warned that syndicates which place a portfolio of energy liability business in their 2012 business plans may well see then rejected given the way in which the classes have delivered loss after loss.
One leading energy reinsurer said: “It doesn’t matter how you cut it or which period you take if you look at the results for energy liability in Lloyd’s they have made very nasty reading. You can see why Tom Bolt is taking such a stance.”