UK Regulators Approve Lloyd’s Special Purpose Vehicle to Attract New Forms of Capital

UK Regulators Approve Lloyd’s Special Purpose Vehicle to Attract New Forms of Capital

2021-01-14 12:13:05

Lloyd & # 39; s has announced that it has received regulatory approval to create a new multi-insurance special purpose vehicle, which aims to raise new forms of capital.

The new platform, an important milestone for the future of Lloyd & # 39; s strategy, will make it easier for investors to access the Lloyd & # 39; s market and benefit investors by adopting a more transparent and efficient capital management process. offer.

Using UK Protected Cell Companies (PCC) law, Lloyd & # 39; s has sponsored the creation of an independently owned and operated UK Protected Cell Company (PCC), London Bridge Risk PCC Ltd.

The PCC will provide an entry point for both UK and international investors, including underwriting securities (ILS) investors, to deploy funds in the Lloyd & # 39; s market in a tax transparent manner.

Lloyd's members will be able to use the new vehicle to manage their capital requirements by attracting new categories of investors, such as pension funds, and will benefit from shorter start-up times and lower transaction costs.

In addition, standardized documentation and processes have been developed to make the process faster and more fiscally transparent and to streamline the regulatory approval approach for investors.

As long as new individual proposals use standard documentation and remain within the regulatory scope of mandates, it will be a straightforward notification process for each deal, eliminating the need for expensive and often lengthy individual requests.

The new vehicle complements Lloyd & # 39; s more traditional approaches to investing capital by offering additional options.
The insurance management services of London Bridge Risk PCC Ltd. are provided by Horseshoe, which specializes in the management of ILS vehicles and operates in multiple jurisdictions.

"As part of the Future at Lloyd & # 39; s strategy, we will continue to look at all the ways we can make it easier and more efficient to deploy and manage capital at Lloyd & # 39; s," said Burkhard Keese, CFO, Lloyd & # 39; s.

"Through our sponsorship of the London Bridge Risk PCC, we will provide investors with the opportunity to enter the market in a new tax transparent way with standardized documents and a much easier repeatable process," he added.

“ILS investments are not new to Lloyd & # 39; s, but this is the first time a UK PCC has been set up as a platform for investors to support and provide capital to Lloyd & # 39; s members. We look forward to working with investors and Lloyd & # 39; s Members who wish to use this new PCC to structure their participation in Lloyd & # 39; s. "

The multi-insurance special purpose vehicle received regulatory approval from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

Source: Lloyd & # 39; s

The most important insurance news, delivered to your inbox every working day.

Receive the trusted newsletter from the insurance industry


Insurance News