London Bridge Risk PCC Ltd. news

A UK parliamentary group, the House of Lords Industry and Regulators Committee, has launched an inquiry into commercial insurance and reinsurance regulation, to assess its effects on the competitiveness of the London market.

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.

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 London Bridge Risk PCC insurance-linked securities (ILS) structure that enables quota share access to the Lloyd’s insurance and reinsurance market for third-party investors helps to “simplify” investment structures for the first backer of a deal, Ontario Teachers’ Pension Plan (OTPP).

According to CEO John Neal, Lloyd’s is on the verge of securing the backing of insurance-linked securities (ILS) capital for three of its syndicates, which we understand are the first transactions to utilise its London Bridge Risk PCC special purpose structure.

The London insurance and reinsurance market is experiencing its best conditions in decades, according to analysts from investment bank Jefferies, which means it is no surprise that insurance-linked securities (ILS) fund managers are increasingly looking to access business there.

During a recent podcast interview with analysts from investment bank Peel Hunt, Adrian Cox, CEO of specialist insurance and reinsurance firm Beazley explained that he is open to using the new London Bridge Risk PCC insurance-linked securities (ILS) structure, launched by Lloyd’s, as a way to access third-party capital.

Lloyd’s is said to be in “advanced discussions” with some major investors that are looking to use its insurance-linked securities (ILS) structure, the multi Insurance Special Purpose Vehicle (mISPV) named London Bridge Risk PCC Ltd.

Lloyd’s of London’s recently established insurance-linked securities (ILS) structure, the multi Insurance Special Purpose Vehicle (mISPV) named London Bridge Risk PCC Ltd., is for now limited in its use to quota share reinsurance transactions with a Lloyd’s member, we can report.

London Bridge Risk PCC Limited, the newly established insurance-linked securities (ILS) vehicle sponsored by Lloyd’s, will “reduce the frictional costs and time” required for ILS investors to access the returns of the insurance and reinsurance market, law firm Clifford Chance has said.