Bermuda reinsurer Montpelier Re Holdings Ltd. announced yesterday that it has received approval from UK regulator the Financial Services Authority and Lloyd's to establish a wholly-owned Lloyd's Managing Agent subsidiary.

Montpelier Underwriting Agencies Ltd. (MUA) will assume the management of Montpelier Syndicate 5151 for the 2009 underwriting year with effect from January 1, 2009.

Syndicate 5151, which underwrites a book of non-marine property and engineering classes and a limited amount of specialty casualty business sourced from the London, US and European markets, began trading on July 1, 2007, under the management of Spectrum Syndicate Management Limited.

Giuseppe Perdoni has been appointed managing director of MUA, and Peter Rand has been appointed director of underwriting. John Goldsmith and Terry O'Neill have been appointed independent non-executive directors.

Richard Chattock, active underwriter of Syndicate 5151 since its inception, also joins the board, along with Mike Paquette, chief financial officer of Montpelier, who has been appointed finance director. Tom Busher, deputy chairman of Montpelier and head of European Operations, assumes the role of chairman.

Montpelier chairman Anthony Taylor said: "The establishment of our own Lloyd's Managing Agency begins a new chapter in the development of our international platform."