12.1 In July 2012 there were 2,694 approved coverholders,1 and approximately 2,500 “restricted coverholders” in the UK, to whom syndicate underwriters had lent their pen under binding authority agreements (often called “binders”). In 2011 approved coverholders and restricted coverholders provided about 28 per cent of the premium income of the Lloyd’s market.2 In the absence of branches (syndicate “service companies”3 being the nearest equivalent) the use of coverholders permits syndicates to operate outside the Room both in the UK and overseas as if they were locally based insurers. Coverholders are the source of much North American non-marine business.