A test that is undertaken annually to ensure that members of the Society have sufficient eligible assets to meet their underwriting liabilities. The test is undertaken at member level and also on an aggregate basis for all members taking in account the centrally held assets of the Society such as the New Central Fund. Any member that fails the solvency test at member level will be required to provide additional funds or cease underwriting. The centrally held assets of the Society must be sufficient to cover any shortfall of assets at member level.
Insurance Encyclopedia
Lloyd’s syndicate
A group of individuals at Lloyd’s of London who have entrusted their assets to a team of underwriters who underwrite on behalf of the group.
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A member or group of members underwriting insurance business at Lloyd’s through the agency of a managing agent or a substitute agent to which a syndicate number is assigned by the Council. Except where it is expressly otherwise provided the several groups of members to which in different years a particular syndicate number is assigned by or under the authority of the Council shall be treated as the same syndicate, notwithstanding that they may not comprise the same members with the same individual participations. [*] = Syndicate allocated capacity = In relation to a syndicate, the aggregate of the member’s syndicate premium limits of all the members for the time being of the syndicate.
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A group of Lloyd’s underwriters, with one person accepting or rejecting risks on the group’s behalf.
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UK: Group of underwriting members whose syndicate is run by a managing agent whose active underwriter accepts risks on behalf of the syndicate. Each syndicate member takes an agreed share of the risk strictly for his own account. Each syndicate is given its own number and is allowed to underwrite up to an allocated premium limit in any given year. At present a syndicate is formed for an underwriting year as an annual venture, now being phased out.
Lloyd’s Syndicate Business Forecast
A statement of the expected range of results of each open year of account of a syndicate that is submitted to Lloyd’s by its managing agent in mid-year together with the managing agent’s expectations for the next year of account.
Lloyd’s Syndicate Business Plan
A plan of the underwriting of a given syndicate for a given year of account that is prepared by the managing agent of a syndicate and submitted to Lloyd’s for approval in advance of the commencement of underwriting for that year of account.
Lloyd’s Syndicate Number
The unique identifying number assigned to a syndicate by the Council of Lloyd’s.
Lloyd’s Syndicate Pseudonym
A series of letters used to identify a syndicate, which, along with its number, appears on the syndicate’s underwriting stamp.
Lloyd’s Syndicate Reinsurance
The reinsurance of a syndicate by one or more reinsurers. Such reinsurance can only be arranged by a Lloyd’s broker.
Lloyd’s Syndicate Stamp
This term may refer to – (a) a document which lists the names of the members of a syndicate for a given year of account and the amount of each member’s overall premium limit that is allocated to that syndicate; (b) the syndicate allocated capacity of a syndicate; or (c) the underwriting stamp of a syndicate.
Lloyd’s underwriter
A person who writes business for Lloyd’s of London through a Lloyd’s association or facility of Lloyd’s.
Lloyd’s Underwriters
This term may variously refer to-(a) the professional underwriters who are employed by managing agents to underwrite insurance and reinsurance business on behalf of the members of the syndicates that those agents manage. (b) the members of one or more syndicates that underwrite a particular policy; or (b) all members (of the Society) collectively.