Argenta Underwriting Asia (AUA) will cease writing new and renewal business in Singapore with immediate effect following a Lloyd’s managing agency decision to re-allocate capacity to other opportunities worldwide, including in Australia.

The Singapore decision follows a strategic review of business written through the coverholder by managing agency Argenta Syndicate Management Limited.

Argenta’s Australian operations are expected to be re-structured to report directly into the London headquarters “in due course”, subject to regulatory and Lloyd’s approvals.

“We will run-off the existing Singapore risks in an orderly fashion, working closely with our various stakeholders including Lloyd’s Asia and all of our regional customers and supporting brokers,” AUA Principal Officer Scott Sykes said.

“To the extent that it fits within our wider risk appetite, certain regional business may be written through our Sydney branch in the future or repatriated to Syndicate 2121 in London.”

Argenta Syndicate 2121 and special purpose arrangement 6134 have combined capacity for 2022 of £757 million ($1.3 billion). Argenta Holdings is part of reinsurance company Hannover Re.

“I am naturally disappointed that current underwriting conditions do not offer us the opportunity to build upon what we have achieved to date in Singapore in respect of the direct business available to us,” Argenta Group CEO Andrew Annandale said.

“We must focus our capacity on those areas of our business where rates and conditions continue to strengthen.”