Greater Love Hath No Man....4th July, 2014
I’m sure you all know that I am a great fan of Michael Meacock. Not only does our family NameCo, Aardvark Underwriting, have an above average share on Michael’s syndicate 727, but we also have shares in Meacock Capital which owns a sizeable proportion of the syndicate’s capacity. You won't be surprised then to know that I follow with great interest any news or information about Michael and the syndicate.
Earlier this year his Managing Agency terminated its contract with supporting Names with the view of introducing an increase in agency fees. Last week this proposal was withdrawn in response to Michael’s perception of the very competitive underwriting environment which eventually must surely have negative consequences for all of us Lloyd's Names.
Of course we are used to seeing de-emptions activated by Managing Agents who take a cautious or negative view about prospects. Witness MAP 2791 and SPS 6103 for the 2014 Account. But I cannot recall the withdrawal of a proposed fee increase. This is especially significant for a small syndicate (by today’s standards) such as 727 when the agency is having to grapple with the heavy burden of funding the costs of complying with Solvency II. The Gospel According To St John seems relevant!