Dale Underwriting Partners, trading as Dale Managing Agency Limited’s Lloyd’s Syndicate 1729, has announced it will discontinue writing offshore energy as a standalone class of business.
Chief executive officer Duncan Dale said that the decision is part of the company’s approach to portfolio discipline and is intended to align with both performance objectives and the firm’s evolving risk appetite.
“By refining our underwriting focus, we aim to enhance performance and deliver long-term, sustainable value across our portfolio,” Dale said.
Dale also noted the company’s push to support clients and brokers during the transition. “We remain fully committed to supporting our clients and brokers throughout this transition and will work closely with them to ensure an orderly and well-managed run-off of the offshore energy portfolio,” he said.
The move comes at a time when the offshore energy insurance sector is contending with heightened unpredictability. Geopolitical tensions, unresolved conflicts, and shifting trade policies have contributed to a challenging risk landscape, while inflation in repair costs and the adoption of new technologies are also affecting profitability.
The sector is seeing larger individual risk exposures as offshore energy complexes increase in scale, requiring insurers to focus on capacity management and product innovation.
At the same time, the renewables sector has experienced a rise in insurance claims, particularly from contractor errors, natural catastrophes, and extreme weather events. Offshore wind losses are now primarily driven by contractor error and defect, while onshore projects are more affected by weather-related incidents.
That said, the evolving risk environment has also attracted new specialist entrants to the market. Tokio Marine GX, for example, has launched a business focused on green transition risks, offering up to $500 million in capacity for renewable energy and sustainable initiatives, including offshore wind and hydrogen.
Other insurers are also consolidating their positions in the renewables space. Ryan Specialty, for instance, launched a renewables unit in June to provide global insurance solutions for wind, solar, and storage assets, as part of a broader trend to address the complexities of the energy transition.
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