£79 million traded in Auction One

The first of this year’s capacity auctions was completed today. A total of £79.4m was traded across nineteen syndicates. The average price paid to acquire capacity was 41.6p. The more meaningful index of all capacity owned by individual members  stands at 45.6p, close to the average recorded across the three auctions in 2023 of 45.4p. A total of £101m of capacity was tendered for sale, compared to £99m in auction one in 2023. Subscriptions to buy were down, from more than £730m in the first auction last year to £286m. This appears to be because some of the aligned buyers are less active this year.

The most actively traded syndicate was TMK 510, where £21.6m changed hands, of this £17.3m went to Tokio Marine Underwriting Limited, the aligned buyer. The highest priced syndicate was again Chaucer Syndicate 1176, the nuclear syndicate, which traded at 271p/£1.

There are two syndicates that started underwriting in 2024 where capacity was available to trade for the first time. NormanMax Syndicate 3939, managed by Apollo saw £177,000 trade at a modest average price of 1.9p, but Fidelis syndicate 3123, managed by Asta, had a much stronger showing, with £1.7m transacted at 27.6p.

The second of this year’s three auctions will take place on Tuesday 29^th and Wednesday 30^th October. 

A schedule of the first auction results can be found here.