Hamilton Insurance Group Ltd. said it is placing Acappella Syndicate 2014 into runoff.
Acappella is a third-party capital supported Lloyd’s syndicate included in Hamilton’s acquisition in August of Liberty Mutual’s Pembroke Managing Agency Limited (now Hamilton Insurance UK Limited). Acappella will cease writing business immediately, Hamilton said.
Hamilton Insurance Group CEO Pina Albo said the decision is based on the conclusion that Acappella has limited capacity for profitability moving forward.
“As we completed the capital raising process at Lloyd’s, we concluded that Acappella was unlikely to produce an adequate return on capital,” Albo said in prepared remarks. “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.”
Albo said that Hamilton anticipates “continued smooth handling of policyholder obligations,” adding that Acappella policyholders can find contact information on Hamilton’s website at https://hamiltongroup.com/london/syndicate-2014/
As well, Albo said the insurer is “in discussion” with employees impacted by the decision, though she did not disclose details.
Hamilton’s acquisition of Pembroke as well as Liberty Mutual’s Ironshore Europe DAC business doubled its premium volume, adding a geographical reach that includes Dublin, the U.S. and Dubai.
Hamilton is a Bermuda-based specialty insurer and reinsurer.
Source: Hamilton Insurance Group