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Lloyd’s welcomes China Re syndicate

China Reinsurance Corp has signed a deal to become the first Chinese-owned company to establish a Lloyd’s syndicate writing open-market business.

Syndicate 2088 will be managed by Catlin Underwriting Agencies and is forecast to underwrite premiums of about £120 million ($138 million) next year.

China Re and Catlin say Lloyd’s has approved transformation of the existing special purpose syndicate into a stand-alone arrangement that will underwrite a diversified book of business from January.

“Our long-term strategy is to increase our activities in the international markets, and we look forward to working with international clients and their brokers placing business in the Lloyd’s market,” China Re Chairman Li Peiyu said.

Initially the open market segment of the syndicate’s portfolio will focus on property, marine and specialty treaty reinsurance business, some of which is currently written by China Re and which includes Chinese risks.

The syndicate will also continue to write whole-account reinsurance of various Catlin entities.

“Over time, China Re will assume responsibility for all of the functions required by the syndicate,” the companies say in a statement.

China Re Underwriting Agency will initially act as the service company of Syndicate 2088 before applying to regulators and Lloyd’s to become a managing agency.

Catlin CEO Stephen Catlin says approval of the syndicate underscores Lloyd’s position as the leading market for international insurance and reinsurance business.

China Re is the largest reinsurance company in China and is ranked by AM Best as the world’s eighth-largest reinsurance group based on total 2013 premiums of $US7.9 billion ($9.1 billion).