The first pillar of Lockton Re’s Capital Advisory team centres around Lloyd’s capital, its deployment in the market by investors and reinsurers and the optimisation of syndicate portfolios to suit risk and reward profiles over the medium to long term.
Lloyd’s Capital Advisory
Supporting clients to invest at Lloyds, set-up new Syndicates, and source XoL reinsurance.
Investing at Lloyd’s
The first pillar of Lockton Re’s Capital Advisory team centres around Lloyd’s capital, its deployment in the market by investors and reinsurers and the optimisation of syndicate portfolios to suit risk and reward profiles over the medium to long term.
The team has over three decade’s experience advising on all aspects of capital provision to Lloyd’s syndicates at all stages of the underwriting cycle. The allocation of capital to a Lloyd’s Corporate Member can appear complex to new entrants and our team will simplify the corporate finance and explain the opportunity in clear concise terms.
At Lockton Re we advise on capital support for syndicates with a long -term mindset and endeavour to build multi-year capital partnerships that rise and fall in scale along with market cycles.
New Syndicate Set-up
For MGAs and experienced Underwriting teams looking to establish a presence at Lloyd’s, Lockton Re has deep experience with the Lloyd’s entry process having worked on the admission of multiple new syndicates and Syndicates in a Box over recent years.
Our team has longstanding relationships with all the major Managing Agents who house new syndicates and with Lloyd’s New Entrant’s Team and can quickly triage an opportunity to advise on its likely success or failure.
When a syndicate is heading towards a successful launch, Lockton Re has a global network of sophisticated Lloyd’s investors who can provide significant percentages of the overall capital required to back it.
Syndicate outwards reinsurance can also be structured and optimised as part of the launch phase for the syndicate and is seamlessly integrated with broader Lockton Re reinsurance placement brokers.
Additionally, we bring extensive financial modelling skills to support applicants through the business plan review and capital setting process, facilitating a smooth approval from Lloyd’s.
Excess of Loss Capital for Corporate Members
In certain circumstances, it is optimal for syndicates and investors to gain maximum exposure to underwriting returns whilst utilising a smaller amount of their own capital. To facilitate this, third-party reinsurers and/or banks can provide capital layers, sitting above the syndicate and investors own “first loss” capital for a fixed annual premium.
Leveraging returns in this manner requires experience, expertise, and carefully crafted reinsurance contract wordings. The team at Lockton Re have completed several of the largest XoL transactions ever at Lloyd’s and can offer unparalleled advice on this niche area of Lloyd’s capital provision.
We source experienced XoL Reinsurers who can act quickly, understand the structure well and offer competitive pricing to leverage Corporate Member RoE.
Key Contacts
James Mackay
Head of Lloyd’s Capital
James.Mackay@Lockton.com
+44 799 042 2912
David Reams
Senior Broker, Funds at Lloyd’s
David.Reames@lockton.com
+44 750 273 0665
