Lloyd’s of London news

The Lloyd’s market has put its investigations into the potential use of insurance-linked securities (ILS) to protect its Central Fund on-hold for the moment, according to CFO John Parry.

The Lloyd’s of London insurance and reinsurance market improved its result in the first-half of 2018 and underwriters in the market took advantage of rate rises following the 2017 catastrophes to increase the markets premiums written.

The Lloyd’s of London insurance and reinsurance market has named John Neal, the former Group CEO of QBE, as the successor to take on the role of Lloyd’s CEO once Inga Beale steps aside.

Unsurprisingly, managing agencies in the Lloyd’s of London insurance and reinsurance market would like to see insurance-linked securities (ILS) as a permanent fixture and efficient capital options more readily accessible.

Lloyd’s specialist insurance and reinsurance player Beazley’s special purpose arrangement (SPA) syndicate 5623 is set to offer its third-party investor backers access to a broad and diverse range of risks, with the facilities access likely to mean risks in the portfolio that typical ILS funds or strategies do not underwrite.

Nephila Capital, the largest manager of catastrophe and weather insurance and reinsurance linked investment funds, has had its application to transition to operating its own managing agency at Lloyd’s approved by the market Board and has announced a number of hires.

Arcus Syndicate 1856 at Lloyd’s of London, which is backed by funds under the management of the Credit Suisse insurance and reinsurance linked investment strategies team, has announced two senior promotions for Adrian Gfeller and Gary Delaney, as well as a number of other core team updates.

Beazley said this morning that it saw the rate increases achieved so far this year as in line with expectations, despite the market being “awash with capital” and while also noting that “non-traditional capital providers… maintained their commitment to the market.”

It’s common knowledge that the Lloyd’s market has been looking seriously at how an insurance-linked security (ILS) or catastrophe bond structure could assist the market by supporting its capital and profitability, but it is vital any Lloyd’s ILS solution supports syndicate capital, according to Vario Global Capital Ltd.

The value of alternative risk premia focused mutual fund manager Stone Ridge Asset Management’s investment in a Lloyd’s of London corporate vehicle has increased significantly, as the appetite to access reinsurance linked returns through the key specialty re/insurance hub in London looks to be paying off.