Lloyd’s of London news

According to Lloyd’s Chief Financial Officer (CFO), Burkhard Keese, the London Bridge 2 PCC insurance-linked securities (ILS) structure is targeted to see around $1 billion of capital flow in 2024, so has the potential to surpass the activity seen through the structure in 2023.

2023 saw strong growth for insurance and reinsurance linked investment manager Nephila Capital’s specialty lines focused Syndicate 2358 at Lloyd’s, which more than doubled both its gross written premium and its profit for the year.

The first catastrophe bond to be issued using the London Bridge 2 PCC insurance-linked securities (ILS) structure provides a valuable roadmap for Lloyd’s market participants and Lloyd’s CFO believes the market’s ILS platform offers a viable alternative to domiciles like Bermuda.

The Lloyd’s of London insurance and reinsurance marketplace is on-track to achieve its best returns on capital in more than 15 years, according to analysis from Insurance Capital Markets Research.

To attract more capital to the insurance and reinsurance market, including through insurance-linked securities (ILS) opportunities, there is a need for a greater focus on investor needs and delivering transparency, something Lloyd’s CFO Burkhard Keese said his employer is working towards.

With rates remaining higher and performance improved, capital market investor confidence in the global specialty insurance and reinsurance sector is returning, according to Insurance Capital Markets Research.

The capital raise for the 2024 underwriting year for London headquartered specialty insurance and reinsurance firm Beazley’s third-party capital backed Smart Tracker syndicate 5623 was “heavily oversubscribed” and the structure remains on-track to deliver a fourth consecutive year of underwriting profits to backers.

London Bridge 2 PCC Limited and its predecessor, together the Lloyd’s insurance-linked securities (ILS) platform, hit $750 million in aggregate issuance of ILS securities to investors thanks to the recent completion of Beazley’s first natural catastrophe bond, the $100 million Fuchsia 2023-1 transaction.

NormanMax Insurance Holdings, the US based parametric insurance and reinsurance group launched by New Paradigm co-founder Bradley Meier, is on-track to launch a dedicated parametric syndicate at Lloyd’s.

Helios Underwriting PLC (Helios), the AIM listed Lloyd’s focused insurance and reinsurance investment company, has increased its forecast for capacity for 2024 to £501 million, helped by its recently announced third-party capital arrangement which its CEO terms a sidecar for the company.