Reinsurance to Close (RITC) of Lloyd’s Syndicates in Run Off
Underwriting years of account at Lloyd’s can only be closed by reinsuring the liabilities into another Lloyd’s syndicate or transferring their liabilities to an authorised reinsurer (Part VII under the Financial Services and Markets Act). It is expected that most Lloyd’s open years of account will be closed by RITC. When the decision to form Syndicate 5678 was taken in 2007 there were 90 years of account that had not closed in the usual way at the end of 36 months. Gross reserves amounted to over £5 billion and thousands of Lloyd’s “Names” remained trapped on these open years. Virtually all the open years have been closed by Vibe and other syndicates operating in the Lloyd’s RITC market.
Reinsurance of Discontinued Books of Business within Lloyd’s Syndicates
In addition to providing RITC quotations, the Syndicate will offer bespoke solutions for discontinued books of business at Lloyd’s.