Managing general agency Pioneer Underwriting, part of independent broker BMS, has gained the support of Qatar Re for ISN 1980 through a strategic quota share arrangement that commences with the 2014 year of account.
Pioneer chief executive officer Darren Doherty said: "I am delighted to welcome the support of a team and business with the underwriting expertise, capital and strategic vision of Qatar Re and the broader QIC group. We look forward to working with them over the long term."
Qatar Re chief executive Gunther Saacke said: "As an ambitious specialist global reinsurer, it is well known that we are committed to supporting the Lloyd's of London insurance market and increasing our activity therein. Pioneer's high-quality business plan is a welcome addition to our existing third-party Lloyd's portfolio".
Lloyd's sub-syndicate 1980, sponsored by Liberty Syndicates, sits within Liberty Syndicate 4472, and delegates underwriting authority to Pioneer via a coverholder arrangement. It effectively provides capacity to Liberty via a quota share agreement, bringing in some third-party trade capacity. Earlier this year Doherty described the sub-syndicate was "a mechanism to bring our capital into play", permitting Pioneer to make its own underwriting decisions with its own underwriting capacity. The long-term plan is for about 50% of Pioneer's income to come from the syndicate and 50% from the MGA.
Pioneer said today that since its formation as an MGA in April 2011 it had made significant progress and that it currently managed more than £100m in premium. Pioneer operates six Lloyd's delegated authority agreements, six MGU and five traditional distribution MGA contracts.
Pioneer concluded: "This latest step is the conclusion of the next stage of a strategy that it has had in place since its formation".
Apart from being backed by Liberty and third-party capital, Pioneer Underwriting is also backed by Pioneer Underwriting Guernsey ICC Ltd.