Argenta Underwriting Asia’s office in Sydney has been shut, with existing books and future business to be managed from London.

The decision follows a review of underwriting activities in Australia, Argenta Holdings in London announced overnight.

Argenta Holdings is a Hannover Re-owned underwriting and insurance services group operating in the Lloyd’s market.

Argenta Underwriting Australia was established in 2015 as a branch of Singapore subsidiary AUA. The Australian branch operates as an approved coverholder for Argenta’s Lloyd’s syndicate 2121.

“We are very grateful for the efforts of the team in Sydney,” group CEO Nick Moore said.

“The business will be transferred to our London platform and our clients will continue to receive high levels of service from our team.”

Argenta retains a physical presence in Australia via its MHIA office in Tuggerah, a commercial hub 91km north of Sydney.

MHIA is a land lease insurance specialist with a customer base of more than 20,000 nationwide. It is a division of AUA and has been providing cover to residents in land lease communities for more than three decades.

Argenta says MHIA will continue to be an important part of its business.

In its 2023 report, Argenta said syndicate 2121’s overall property account continued to grow in London and via the AUA offices in Tuggerah and Sydney.

The Australian operations underwrite Australasian property and business interruption insurance via delegated authorities through third-party coverholders and open-market risks.

The report said AUA is a service company used by syndicate 2121 as a coverholder to bind risks on its behalf and that a review of the structure of the Australian branch offices was under way.

“The commission retained by AUA for business underwritten by the Australian branch during 2023 was, at most, 28.5% of gross premium,” the report said. “This commission covered original acquisition costs, branch office expenses and processing costs.”

For this year, Australian branch commissions were changed such that AUA now receives 3% in respect of delegated business and 15% on open-market business it underwrites on behalf of syndicate 2121. This is in addition to original acquisition costs.