Chaucer Syndicates Limited – 2008 Business Plan

CHAUCER – 2008 Business Plan
Chaucer Syndicates Limited, the managing agency of Chaucer Holdings PLC ("Chaucer" or "the Group"), has submitted business plans to Lloyd's for Syndicates 1084 and 1176 for the 2008 year of account. The Press Release is copied below or attached.

Chaucer plans to decrease the 2008 capacity of Syndicate 1084 by 8.3% to£445.0m, with a proposed increase in UK motor insurance partially offsetting the targeted reduction across non-motor classes.

Chaucer expects an upturn from UK motor premium rates during 2008 and the Group's Motor Division will benefit from this. While expected to remain at fundamentally profitable levels, premium rates across many non marine and marine classes are under pressure and continue to retreat from recent highs.

The underwriting capacity of Nuclear Syndicate 1176 will remain at £27.5m to take advantage of continued underwriting opportunities.  Chaucer expects overall solvency capital requirements to increase as the rating environment softens in many classes, although the broad diversity of the Group's underlying business and the planned capacity reduction should minimise this.

Chaucer will finalise underwriting plans, including the Group's participations on Syndicates 4000 and 4242, towards the end of this year's hurricane season. 

Ewen Gilmour, Chief Executive Officer of Chaucer, commented: "Our business philosophy is one of writing for profit not for premium as our plans to reduce capacity in 2008 demonstrate.  After benefiting from a sustained period of attractive rating across many international classes, and despite many of these classes now coming under pressure, we remain confident that opportunities continue to exist within our broad-based portfolio to manage capital efficiently both through the reduction of exposures in some areas and through a focus on allocation of capacity.  While prudently renewing as much of our current portfolio as possible, we will also switch capital to those areas where returns are more attractive, notably UK motor where we are seeing first signs of a market upturn.

This philosophy, combined with the unique structure of our Lloyd's business, with its significant UK motor presence, leaves us well placed to manage the market cycle challenges ahead."

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