How to form a syndicate at lloyds of london?
london.cidade
Posts: 137 Forumite
As the title explains itself, the only requirement that I am aware of is to have at least £400k funds. Anybody knows the further required details? thank you
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london.cidade wrote: »As the title explains itself, the only requirement that I am aware of is to have at least £400k funds. Anybody knows the further required details? thank you
I guess you mean becoming a Lloyds name and buying into a syndicate.
Try googling. Here's an example result:How to become a Lloyd’s Name
So what are the pros and cons of becoming a Name now? Unless you can put up a minimum of £600,000 (£400,000 capital plus the £200,000 cost of buying into a syndicate), this isn’t for you. And we’re talking here about liquid assets, such as cash, shares, gilts, letters of credit or bank guarantees, all of which could be realised quickly if necessary. What’s more, you have to keep your capital level topped up. If you were to drop, say, £150,000 in a bad year, you’d need to rustle up that amount on top of your original £400,000 investment.
Link: https://www.capitalandconflict.com/economics/how-to-become-a-lloyds-name/0 -
london.cidade wrote: »As the title explains itself, the only requirement that I am aware of is to have at least £400k funds. Anybody knows the further required details? thank you
If you need to google it, chances are you can't do it.
If you mean in terms of coverholder it's different, but as mentioned atleast 600k in funds will only squeeze the minimum requirement if they even choose to go for it you are a low capital therefore low return and high risk. You'll also need to consider your Levies and FCA registration, the 36 month accounting period for the syndicate.
You'll need a lot of cash reserves to survive over lengthy periods of time or turbulent claim periods.Save £12k in 2019 -0 -
AstroTurtle wrote: »If you need to google it, chances are you can't do it.
If you mean in terms of coverholder it's different, but as mentioned atleast 600k in funds will only squeeze the minimum requirement if they even choose to go for it you are a low capital therefore low return and high risk. You'll also need to consider your Levies and FCA registration, the 36 month accounting period for the syndicate.
You'll need a lot of cash reserves to survive over lengthy periods of time or turbulent claim periods.
It used to be a licence to print money before they tightened up on it0 -
As an 'outsider' you'll only get the poor quality risks so be prepared to lose everything you've got; not just your 400K.0
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Forming a new syndicate is quite different from investing capital through a managing agent. In the current climate you'd probably not be admitted with less than £30 million underwriting capacity. As mentioned above, you'd need to allow for 3 years accounting cycle and would expect expense ratio of around 30% so probably looking at £150 million to start from scratch. £400k wouldn't cover professional advisors fees.Lloyds broker working in Private Clients and Property Owners.
Looking to help and be helped.0
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