Auction One Results
Lloyd’s has released results for the first of three capacity auctions to be held this month and next. All 20 syndicates with evergreen capacity rights achieved a price, with a total of £78m of capacity changing hands. The most actively traded syndicate was Canopius 4444, which at £42m accounted for more than half the capacity exchanged. This syndicate was subject to a capacity offer from the managing agent, and the aligned buyer was the only successful purchaser. At the other end of the spectrum, just £1,550 of capacity was traded on Beaufort Syndicate 318.
According to Argenta’ All Capacity index, overall prices were up 22% on 2017 levels, with increased prices paid for all key third party members’ syndicates including Hiscox 33 (up 24%), QBE 386 (up 21%), Kiln 510 (up 12.5%), Atrium 609 (up 21%), Beazley 623 (up 21%) and MAP 2791 (up 20%). This index, which takes into account all capacity held by third party members, gives a more accurate representation of price moves than the average price paid to acquire capacity.
The second auction will be held next week, on Wednesday 31st October and Thursday 1st November, and the final auction held on Wednesday and Thursday 7th and 8th November.
Syndicate strike prices can be found here. We will send underwriting members further analysis on this auction along with our expectations for Auction Two shortly.