London headquartered specialty insurance and reinsurance firm Beazley is moving its ESG consortium out of the Lloyd’s Syndicate In A Box (SIAB) framework to sit under its third-party capital backed Smart Tracker syndicate 5623.
The ESG consoritum was operational from 1 January 2022 and had a focus on offering additional capacity to businesses that perform well against a range of ESG metrics.
Beazley had highlighted its ESG consortium as an underwriting vehicle that would be supported by some third-party capital from investors, suggesting an interesting opportunity for insurance-linked investors looking to access ESG appropriate strategies.
Now, the company has said that its ESG Consortium is following a profitable growth trajectory and that its capacity will now move to follow syndicate 5623.
“Syndicate 5623’s market leading low-cost base will further improve the efficiency and pace of development of the consortium,” Beazley explained.
Adding that, “Clients will continue to receive additional capacity based on the same scoring criteria,” so no change to the product offering.
The ESG Consortium’s capacity will move fully to syndicate 5623 from January 2024, subject to regulatory approval, Beazley said, with syndicate 5623 seen as “well placed to deliver the future growth of the ESG Consortium.”
The company said that the SIAB framework “proved an effective test bed” for this “additional capacity model.”
Now, the ESG Consortium will also explore a potentially expanded remit, looking at how additional capacity for Beazley clients that perform well against ESG criteria, could be offered through its European and US domestic insurance companies.
Bob Quane, Chief Underwriting Officer, Beazley commented, “The ESG Consortium offers valuable additional capacity to businesses with high ESG scores.
“I’m looking forward to seeing the ESG Consortium continue to build and serve more clients in Europe and the US via syndicate 5623.”
It’s a coming of age, of sorts, for the ESG focused underwriting strategy and bringing it under the Smart Tracker syndicate 5623 could also help attract additional capital, as within 5623 there are other large insurance-linked investors that may find the ESG portfolio a specific offering of interest.