The capital raise for the 2024 underwriting year for London headquartered specialty insurance and reinsurance firm Beazley’s third-party capital backed Smart Tracker syndicate 5623 was “heavily oversubscribed” and the structure remains on-track to deliver a fourth consecutive year of underwriting profits to backers.
This is according to Will Roscoe, Head of Portfolio Underwriting at Beazley, and the Active Underwriter for the firm’s Smart Tracker Syndicate 5623 and its ESG Syndicate 4321.
Roscoe was reflecting on a strong 2023 for the Beazley Portfolio Underwriting team he runs and looking ahead to 2024 in a post on Linkedin.
He explained that, “The Beazley Smart Tracker syndicate 5623 has delivered its 2023 business plan having underwritten $425m Gross Written Premium.”
Further stating that, “We are on track to return a fourth straight underwriting profit to our investors when we announce our 2021 year of account result next year.”
The third-party capital backed Smart Tracker is one of Beazley’s underwriting structures at Lloyd’s that attracts a diverse range of institutional investor capital.
It is considered akin to an insurance-linked strategy, attracting some well-known pension investors that allocate to insurance-linked securities (ILS).
The Smart Tracker both augments Beazley’s underwriting capacity in the market, while also enabling it to earn fee-like income and offer low-cost risk capital to clients.
The newer ESG Syndicate 4321 is also popular with third-party capital and delivers similar benefits to Beazley, while also providing a home for underwriting capital that targets ESG aligned opportunities.
Roscoe highlighted the demand from investors for the strategies, saying, “Our capital raise for the 2024 underwriting year of account was heavily oversubscribed, reflecting the strong demand we have seen from our third-party capital investors.”
He also highlighted that his team has launched additional underwriting facilities, saying, “We are proud to be leading the London market’s Smart Follow underwriting strategy.”
Beazley has ambitions to continue growing out the Smart Tracker and related facilities.
Roscoe said, “Looking ahead to 2024 we are poised to deliver further growth, with an ambitious plan to underwrite $525m in premium, taking advantage of continued excellent market conditions.”
The Smart Tracker has proved a popular structure for investors looking to participate in the returns of the Lloyd’s market, as it follows a curated approach to tracking and following the performance of some of the best underwriters.
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