The recent withdrawal of support for two Merrett Group syndicates by Lloyd's agents will have no immediate impact on the new Bermuda-based quota share reinsurer Underwriters Capital (Merrett) (UCM).

UCM is managed in Bermuda by Marsh & McLennan Management Services. Mr. Andrew Carr, president of Marsh & McLennan Management Services, said that in the short term "there will be no immediate or meaningful effect.

"We understand Names are leaving the Merrett Group syndicates, but undoubtably new Names are arriving.

"There are many moves afoot to bring capacity to the London market -- the advent of corporate capital is one of these. It will be nearer the end of the underwriting year and beginning of the next year when we can assess capacity available to Merrett,'' said Mr. Carr.

"It is typical of the Lloyd's market for Names to come and go at this time.

There is more attention now because of the perceived trouble.'' Mr. Carr concluded it was too early to discern an effect on UCM, which provides whole account quota share reinsurance to syndicates under Merrett management.

A spokesman for the Merrett Group in London said: "Discussions are being held with UCM about the 1994 business plan.'' Overall capacity for the next underwriting year was expected to remain at the same level, he said.