Quick Reference

1 A group of bankers, insurers, contractors, etc., who join together to work on a large project. Notable activities undertaken by such a group may include syndicated loans and underwriting (see also syndicated bank facility).

2 A number of Lloyd's underwriters who accept insurance risks as a group; each syndicate is run by a syndicate manager or agent. The names in the syndicate accept an agreed share of each risk in return for the same proportion of the premium. The names do not take part in organizing the underwriting business but treat their involvement with the syndicate as an investment. Since the reorganization of Lloyd's in the 1990s, limited companies have been allowed to become names. Although a syndicate underwrites as a group, each member is financially responsible for only his or her own share.

Subjects: Financial Institutions and Services.

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