Marco completes RITC with Coverys Syndicate 1975

By Rebecca Delaney

Feb 14 - (The Insurer) - Legacy group Marco Capital announced on Friday that it has completed the previously announced reinsurance-to-close (RITC) transaction with Coverys Syndicate 1975.

The transaction was underwritten by Marco Syndicate 1254, which is managed by Polo Managing Agency (PMA).

The RITC is effective from 1 January 2025 and covers the 2022 and prior years of account for Syndicate 1975, which covered specialist medical professional lines.

Announced in October 2023, the transaction came after Coverys Managing Agency chose to conduct an orderly closure of its Lloyd’s operations in late 2021.

Marco struck a similar deal in August last year for PMA to take over the third-party management and administration of RITC Syndicate 1110 from the collapsed R&Q Group.

PMA assumed third-party responsibility for the management of Syndicate 1110 shortly after trading in R&Q’s shares was suspended on the London Stock Exchange following the appointment of administrators by the Bermuda Supreme Court.

Three months earlier, Marco Capital had acquired R&Q’s run-off UK insurer Inceptum for £11.25mn.

PwC's latest non-life run-off review, released earlier this week, anticipated an uptick in Lloyd's RITC activity over the next 12 months.

Under rules which came into force on 1 January 2025, all new legacy deals require pre-transaction review and approval by Lloyd’s. This is expected to have a deferred impact later in the year, with the compliance burden falling predominantly on the acquiring entity.

PwC also said that legacy market activity may be boosted by the Prudential Regulation Authority's finalised solvent exit planning rules for insurers, which are expected to come into force in 2026.