Client Case Study

Stability, a shared culture and long-term planning is proof that third party management isn’t just about “turning the key” for syndicates.

“We recognise the benefit of Asta’s expertise and service and the secure and stable environment they provide for our business. This enables us to focus on our business ambitions and the syndicate’s growth and profitability.”

Tony Ive, Active Underwriter, Syndicate 2525

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The key achievements

  • A credible business plan combined with a robust internal model and a strong effective governance and risk framework were essential to achieving Solvency II compliance.
  • Once the move was agreed by Lloyd’s, swift migration of syndicate management to Asta was achieved in a matter of weeks.
  • Existing capital support was maintained throughout the process and ensured the stability necessary for the business to trade forward.
  • Improved processes and cost efficiencies prove that third party management is a profitable long-term solution for the business.
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The brief

Syndicate 2525 was established in 2000 as a specialist Employer’s and Third-Party Liability Lloyd’s insurer, underwriting all aspects of liability business, including offshore and construction risks.

Following a decision by their existing managing agency to cease supporting syndicates with third party capital, and with the Solvency II compliance deadline looming, a new third party manager was needed to help move their business forward.

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The challenge

Asta identified three main hurdles to management of the syndicate:

  1. Following the 2009 Solvency II Directive, the insurance industry was developing new risk management practices to determine required capital and manage the risk of insolvency. Creating an internal model to ensure compliance for Syndicate 2525 was therefore a key priority.
  2. The syndicate was supported mainly by traditional names with tradeable capacity which meant that all members needed to be consulted and their agreement sought before migration could be completed.
  3. Syndicate staff were employed by their existing Managing Agent and this meant that a full TUPE transfer was necessary to ensure continuity of their terms and conditions of employment. Ensuring staff retention and maintaining the existing culture of the syndicate was a priority for the 2525 management team.
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The approach

Demonstrating Solvency II readiness and re-drafting the syndicate’s business plan were essential in obtaining the necessary approval.

The Asta team worked closely with syndicate management to draft the required documentation and liaise with Lloyd’s to facilitate an efficient route to approval.

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The delivery

A key part of Asta’s work involved building for the syndicate a fully compliant Solvency II framework and internal model. The team engaged with underwriters to ensure modelled results were an accurate reflection of their class of business. This information was then used to quantify and rank the risks faced by the business. Once the internal model was in place an independent review and validation was carried out as the final step before approval, thus avoiding any penal capital charge for syndicate members.

With offices in London and Leeds, managing the seamless transfer of staff to new employment contracts was crucial in maintaining the syndicate’s reputation for client service as well as staff retention and morale.

It was also important for all staff to buy into a culture where collaboration and partnership are values shared by both organisations.

Underwriters and their support staff are based in Asta’s office in London whilst the syndicate’s Leeds office houses the majority of their claims team. Asta also provides the syndicate with wider operational services such as Finance, Actuarial, Compliance, IT and HR.

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The summary

Over the last eight years, capacity has grown from circa £40m to £80m.

Asta’s oversight has helped maintain underwriting discipline and set the business on a steady course with consistent profitability. Agency costs have reduced proportionately year-on-year through improved processes and the efficiencies associated with operating as a mono-line syndicate.

With continuity of capital being instrumental in supporting the syndicate’s future plans, stable long-term management provides a secure environment for the capital providers who have supported the business from day one.

All of this enables Syndicate 2525 to look to the future with confidence while ensuring its reputation for steady growth is maintained through the continued partnership with Asta.

Asta is the leading third party managing agent at Lloyd’s. We support a diverse range of businesses by delivering cost-effective underwriting management solutions tailored to your exact requirements and business lifecycle.

Our goal is to help you achieve your ambition – of establishing a successful, profitable underwriting business.

Contact us to find out more about how Asta can help set up your business:



Asta is the leading third party managing agent at Lloyd’s. We support a diverse range of businesses by delivering cost-effective underwriting management solutions tailored to your exact requirements and business lifecycle. Our goal is to help you achieve your ambition – of establishing a successful, profitable underwriting business.


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