Lockton Re, the reinsurance arm of the global broker, has today announced the launch of Lockton Re Capital Markets (LRCM), a new business unit to help clients access broader pools of capital from across the traditional and capital markets.
Lockton Re highlights the “complementary” nature of these broader capital pools and risk transfer solutions.
Zach Breslin, previously a Managing Director at Aon Securities in New York and who joined Lockton Re to lead capital markets activities earlier this year, has been confirmed as the leader of Lockton Re Capital Markets (LRCM).
The LRCM business unti intends to develop a broad range of insurance-linked securities (ILS) execution services, as well as related products, with a build-out of the operational and capital markets platform now underway.
Hiring is also part of the plan and Lockton Re now becomes the latest broker to provide full ILS and capital market optionality to its reinsurance buying clients.
Robert Bisset, Chairman Global Retrocession & Property Specialty, Bermuda & Market Capital, Lockton Re, commented on the news, “This investment underscores our commitment to building a world class reinsurance business, capable of accessing all capital providers, across all product categories to service our clients.
“Pending regulatory approval, LRCM will be fully integrated into our broader reinsurance business, except as restricted by regulatory compliance. Our clients will see one client team. Our bankers and brokers will be solution agnostic as we are committed to our Fierce Independence ethos, which means we are focused on serving clients’ interests foremost.”
Zach Breslin, Leader, Lockton Re Capital Markets, added, “We are committed to product innovation as we deliver the most efficient forms of capital to fund our clients’ businesses. Being Born Digital and operating within the entrepreneurial culture that is Lockton Re, we will be able to leverage our technology driven approach and deep subject matter expertise to help our clients think creatively and move quickly in accessing capital to execute on their business plans throughout market cycles.
“Over the next 18 months, as we continue to add staff, pursue and obtain regulatory approvals and build infrastructure to deliver full execution capabilities for ILS and related products, we will be onboarding execution capabilities in certain products and geographies to assist our clients through the key 2023 renewal dates.”
Tim Gardner, Global CEO, Lockton Re, concluded, “As we enter a very busy time of the year for the reinsurance market, I am delighted we are able to consistently deliver on our strategy and continue to build on the exceptional expertise and capabilities we have as part of our global platform. Zach and Bill Griffiths are great examples of the market leading talent that drives the collaborative focus of our culture. I am excited to be working with them both as we expand this exciting platform.”
For reinsurance brokers, it’s critical nowadays to be able to offer clients access to broader capital provided via insurance-linked securities (ILS), so formalising these capabilities under a new business unit makes perfect sense for Lockton Re.