Sportscover has denied a London media report suggesting the syndicate owned by the Melbourne-based underwriting agency may have difficulties with maintaining its capacity at Lloyd’s.

Late last year Sportscover’s Syndicate 3334 was facing a £10 million ($18.7 million) shortfall in its £45.7 million ($85.8 million) capacity after two capital providers withdrew.

The shortfall was taken up by Haverford, a vehicle owned by insurance entrepreneur Mark Byrne, who was also tipped to take over the Sportscover business at Lloyd’s.

Sportscover director Steve Boucher told insuranceNEWS.com.au in February that the talks with Mr Byrne over a strategic partnership were at an early stage and suggestions of a takeover were “getting ahead of things”.

Last week’s media report says the talks have since broken down and Mr Byrne is threatening to withdraw his £10 million in capital at the end of the year.

Mr Boucher told insuranceNEWS.com.au today that “it’s business as usual for Sportscover at Lloyd’s. We have our full capacity for the year, covered by Lloyd’s ‘A’ rating, and our policies are all backed by the Lloyd’s chain of security.

“There isn’t an issue and reports that suggest otherwise are simply wrong.”