Lloyd’s of London news

Lloyd’s of London said today that the Chief Financial Officer of the insurance and reinsurance market John Parry will be departing next year, as he steps down from a position where he has been instrumental in helping Lloyd’s open up to alternative capital and ILS.

Alternative risk premia focused mutual fund manager Stone Ridge Asset Management has expanded its investment in a Lloyd’s corporate vehicle in recent months, reflecting an increasing ambition from the manager to access reinsurance linked returns through the key specialty re/insurance hub in London.

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, fell to a loss for 2017 but the syndicates underwriting activities continued to expand during the year.

Executives from Lloyd’s of London said today that they welcome and want to work with the UK Government’s new insurance-linked securities (ILS) regulatory and tax framework, but at the same time warn that the UK ILS regulation is actually likely to increase the price pressures that its market participants face.

If you thought that the Lloyd’s of London insurance and reinsurance market had changed in the last decade, it’s likely nothing compared to the change we will see over the coming years, as the world’s oldest re/insurance market accepts the fact its model has become unsustainable.

Specialist Lloyd’s focused insurance and reinsurance player Beazley is actively exploring the use of more insurance-linked securities (ILS) capital within its business, as well as the UK ILS regulations, as it examines the potential for an ILS structure to sit alongside its reinsurance arrangements.

Insurance, reinsurance companies and syndicates trading in the Lloyd’s of London market should leverage ILS capital and insurance-linked securities (ILS) as just one of a range of sources of capital, in order to secure their futures, according to Paul Culham, Group Chief Underwriting Officer at Tokio Marine Kiln.

It’s been reported that Lloyd’s of London has begun the process of looking more seriously at collateralised reinsurance instruments, such as insurance-linked securities (ILS) and catastrophe bonds, as a way to augment its own capacity and to offload excess risks to third-parties.

The Lloyd’s Corporation, an independent organisation and regulator that sits behind the Lloyd’s of London insurance and reinsurance market, has been looking at the United Kingdom’s new insurance-linked securities (ILS) regulatory regime and considering its potential uses for disaster risk transfer.

Lloyd’s specialist insurance and reinsurance player Beazley is planning to launch a new special purpose arrangement (SPA) syndicate 5623, which will take a quota share of the firm’s business underwritten from broker facilities and be backed by a range of third-party investors, including some capital from the ILS market.