Specialist underwriter SLE Group has doubled capacity for its property portfolio, with Ace Insurance agreeing to a $10 million facility.

This will be added to the $10 million facility underwritten by several Lloyd’s syndicates including Amlin and Kiln.

SLE says reduced capacity from Lloyd’s following last year’s claims rise led it to look for another partner.

The extra capacity will be shared by two SLE Group companies – SLE Worldwide Australia and Pacific Underwriting.

Pacific specialises in hard-to-place risks, particularly high-hazard manufacturing risks, while SLE Worldwide Australia focuses on insuring sports, leisure and entertainment.

SLE Property Manager Tim Higgins says the group has noticed a “massive” amount of demand, particularly in Queensland.

“A lot of insurers have pulled out of the Queensland market, especially in regional areas,” he told insuranceNEWS.com.au. “Flooding issues and cyclones are still in underwriters’ minds, so a lot of capacity has dried up.”

He says although many insurers faced increased reinsurance costs and tightened underwriting standards after the disasters, he does not think the losses justify a complete withdrawal.

SLE will use the extra capacity to expand its offering for sports associations in regional areas and country hotels.

“It’s a great opportunity for us,” he said. “We hope to grow significantly.”