Lloyd’s of London news

Investors backing insurance-linked securities funds under the management of Cedar Trace Capital Management are expected to provide some of the capital to support the planned launch of a $300m Lloyd’s syndicate for the 2027 underwriting year, by group company Cedar Trace Underwriting.

Insurance Capital Markets Research (ICMR) has launched a new index to enhance its reporting for insurance investors that promises to enhance the transparency of investing into the Lloyd’s insurance and reinsurance market, while providing useful data to help in capital deployment decision making.

Descartes Underwriting, the parametric risk transfer specialist, and OAK Global, the specialist Lloyd’s underwriting company, has announced Descartes’ approval as a Coverholder at Lloyd’s, which will see the firm underwrite parametric policies through OAK Global’s Syndicate 2843, bringing new risks to the London market.

Global reinsurance broker Howden Re has announced that Tim Radford has been appointed to the new role of Managing Director, Head of Lloyd’s Capital, which is set to help strengthen the organisation’s leadership across Lloyd’s market capital and investor engagement.

Two of the Lloyd’s syndicates operated by specialist ILS investment manager Nephila Capital are set to provide capacity support to a new property treaty consortium launched by MS Amlin, with data centre risk underwriting said to be a key focus for the new venture.

London market insurance and reinsurance firms, including at Lloyd’s, have increased their use of alternative capital and insurance-linked securities in recent years. But while this is seen as supportive of their returns-on-equity and cycle management capabilities, it may also exacerbate rate softening AM Best warns.

Lloyd’s of London continued to demonstrate its attractiveness to investors throughout 2025, with individual syndicates delivering strong results, while the market has also seen an increasing number of new entrants and a growth in risk capital deployed through the market’s insurance-linked securities (ILS) structure London Bridge 2 PCC.

Nephila Capital’s specialty lines focused Syndicate 2358 at Lloyd’s delivered a $35.6 million profit for the 2025 underwriting year, as its gross premiums written soared by 129% to reach over $508.6 million for the period.

In a world where competition for capital continues to accelerate, the Lloyd’s insurance and reinsurance market aims to create more flexibility for capital entering and investing there, recognising that its unique structure can help allocators access more risk per unit of capital than elsewhere.

During the AIG fourth-quarter earnings call today CEO Peter Zaffino highlighted the insurer’s launch of two sidecar-style syndicates at Lloyd’s and said the company has a “strong pipeline of SPV opportunities” suggesting future third-party capital partnerships may be expected.