It will be business as usual at Probitas 1492 even though its majority owner, Istmo Re, has been placed into liquidation, the Lloyd’s syndicate has said.

Panama’s insurance regulator took control of Istmo Re in late 2016. Rating agency AM Best has also downgraded the Panamian reinsurer to “E.”

 

Following the appointment of liquidators at Istmo Re, Probitas 1492 continues to have confidential discussions with a number of new investors to replace Istmo, some of which are at an advanced stage.

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The underwriting firm is now working closely with Lloyd’s, which has been kept “fully informed of developments,” according to Probitas 1492 CEO Ash Bathia.

 

Bathia said Istmo’s participation in the syndicate’s underwriting capital for the 2017 year of account is less than 2% and will be replaced as part of the normal mid-year coming-into-line process.

“The management continues to have sole responsibility for the running of the Syndicate and, in accordance with the initial agreement, we retain the right to find an acceptable buyer of Istmo’s capacity and shareholding,” Bathia said.


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