Lloyd’s of London news

As many Lloyd’s and London market insurers retreat from the catastrophe space, amid elevated losses and the uncertain but increasing impacts of climate change, some underwriters could look to alternative reinsurance capital sources to help maintain their cat portfolios.

Lloyd’s has announced the appointment of Des Potter, a former Guy Carpenter executive and a specialist in insurance-linked securities (ILS), as a special advisor to assist the market in furthering its capital framework ambitions.

Demonstrating that the returns of Lloyd’s insurance and reinsurance market business remains very attractive to investors, Beazley said this morning that its Smart Tracker special purpose arrangement (SPA) syndicate 5623 is now “significantly oversubscribed by third party capital”.

Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.

Nephila Capital’s new specialty lines focused Syndicate 2358 at Lloyd’s was funded via the market’s insurance-linked securities (ILS) structure, London Bridge Risk PCC.

Nephila Capital, the largest investment manager focused on insurance and reinsurance as well as climate risk, has announced the launch of Syndicate 2358 at Lloyd’s, which will have a specialty lines focus.

Bermuda headquartered ILS fund and reinsurance linked investment manager ILS Capital Management has further increased its stake in Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle, with an additional share purchase.

According to a study undertaken by Aon’s UK Capital Advisory team alongside the Lloyd’s Market Association (LMA), some syndicates at Lloyd’s have been frustrated by the LCM5 catastrophe controls, while not every player has an appetite for third-party capital or to use the London Bridge Risk PCC ILS structure.

The Lloyd’s insurance and reinsurance market has announced the launch of a retail parametric cyclone insurance product for Northern Australia, with backing from stalwart markets Beazley, AXA XL, Hiscox and RenaissanceRe.

Bermuda headquartered ILS fund and reinsurance linked investment manager ILS Capital Management has purchased more shares in Helios Underwriting, the Lloyd’s of London focused investment and underwriting vehicle.