Lloyd’s of London news

The new Lloyd’s sponsored protected cell company that was announced last week, London Bridge 2 PCC Ltd, represents “an efficient mechanism” for both existing and new investors to access risk from the Lloyd’s market, according to Clifford Chance.

The announcement today of a new insurance-linked securities (ILS) structure for the Lloyd’s of London insurance and reinsurance market brings much greater flexibility to the way Lloyd’s participants can access the capital markets and investors access risk from underwriters in the market.

Lloyd’s of London will today announce a significant expansion of its London Bridge insurance-linked securities (ILS) platform, with a plan to welcome more capital, new types of reinsurance transactions and make the transfer of different kinds of risks to capital market investors simpler.

The Lloyd’s insurance and reinsurance market’s willingness to adapt its capital framework is seen as positive by broker Gallagher Re, who in a new report noted the use of ILS structure London Bridge Risk to bring in new capital, contributing to a healthy Funds at Lloyd’s market.

Rating agency AM Best has maintained its outlook for the London insurance and reinsurance market at Stable, with improving access to third-party capital one of the key drivers.

The Lloyd’s insurance and reinsurance market is understood to be in active discussion with financial market regulators over an expansion of the regulatory approvals for its insurance-linked securities (ILS) structure London Bridge Risk PCC.

Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle which counts among its backing a significant proportion of capital from insurance-linked securities (ILS) market sources, has revealed that over the last 5 years it has outperformed the Lloyd’s market by 6.1% on average.

The Lloyd’s insurance and reinsurance market has clear ambitions to broaden its offering to investors seeking insurance-linked returns, with CFO Burkhard Keese saying today that it views the creation of a casualty insurance-linked securities (ILS) market as possible.

The Lloyd’s insurance and reinsurance market has reported a full-year 2021 profit of £2.3 billion, with a combined ratio of 93.5%, which it says is “the best quality result reported for six years.”

SiriusPoint and Mosaic Insurance, which both launched in February of last year, have entered into a strategic partnership which includes an investment from the former into the latter, and also the sale of Sirius International Managing Agency (SIMA) at Lloyd’s to Mosaic.