London-headquartered specialist insurance-linked securities (ILS) and reinsurance linked investment manager Leadenhall Capital Partners LLP sourced more risk from the Lloyd’s market thanks to its relationship with MS Amlin in 2017.
In 2017, Leadenhall Capital Partners benefited from almost £63 million of premiums underwritten on its behalf by MS Amlin Syndicate 2001 at Lloyd’s.
That was up significantly on the £43.6 million underwritten by the syndicate, on Leadenhall’s behalf, in 2016.
The relationship enables Leadenhall to source reinsurance risk more directly from the Lloyd’s marketplace, by working closely with MS Amlin, which increased its stake in Leadenhall to 75% in 2014.
By working with the MS Amlin syndicate, Leadenhall benefits from more efficient access to risks placed in the Lloyd’s market, perhaps enabling it to underwrite and source risks for its ILS investment funds that may have been more difficult to access otherwise.
MS Amlin’s syndicate 2001 received £2.8 million of commission for the risks it underwrote and ceded through to Leadenhall during the year.
Leadenhall receives the risks through a relationship with transformer reinsurer Horseshoe Re, which also underwrites policies with Leadenhall, as the MS Amlin syndicate cedes 100% of the risks involved through to the Horseshoe Re reinsurance vehicle, while the syndicate also benefits from a commission which is typically 4.5%.
ILS fund managers with access to the Lloyd’s market largely increased underwriting activities there in the last year and with the MS Amlin syndicate being amongst the largest the Leadenhall Capital Partners team benefits from access to risk and the security of the Lloyd’s market through the relationship.