Argenta Holdings is launching a special purpose arrangement (SPA) with the backing of parent company Hannover Re following approval from Lloyd’s franchise board.

Argenta Syndicate Management (ASML), the managing agency subsidiary of Argenta is launching SPA 6134 which will be managed alongside Syndicate 2121.

Sponsored and capitalised by Hannover Re, SPA 6134 will be a quota share facility reinsuring business written by Syndicate 2121, which will operate as the host syndicate for the SPA and will retain at least 10 percent of the business introduced by the sponsor.

For 2018 the SPA is targeting gross written premium (GWP) income of £36mn spanning different classes of business within the underwriting capability of the host syndicate.

In March 2017, Hannover Re reached an agreement to acquire the entire share capital of the UK holding company Argenta, which owns Lloyd’s managing agent Argenta Syndicate Management and Argenta Private Capital as well as pro rata share of the Lloyd's Syndicate 2121.

Chief executive of Argenta, Andrew Annandale commented: “SPA 6134 will provide ASML with greater flexibility to react to changing market conditions and allow Syndicate 2121 to take advantage of new opportunities following Argenta’s acquisition by Hannover Re and the very significant losses experienced by the market during 2017.”