Lloyd’s searches for a corporate to pilot its first captive in over 20 years 

Lloyd’s is searching for a willing corporate to pilot its first Lime Street captive in 20 years. The move is seen by many as part of a wide effort to leverage the corporation’s global licenses and to position itself as an onshore alternative hub for captives. 

The Insurer reports that Asta Managing Agency (acquired by Davies Group in 2022), has established a Lloyd’s captive syndicate framework,  which could be used by multinational companies as a captive structure. 

“New captive syndicate solution at Lloyd’s presents an opportunity to complement existing captive solutions, as it provides a fully aligned solution that replaces costly third-party fronting carriers”, said Nick Frost, President of Davies Captive Management speaking to The Insurer. 

The model will be geared towards large multinational businesses with a GWP more than $30 million a year. 

Many in the corporate risk management space welcomed today’s news including Julia Graham, CEO of Airmic who spoke with The Insurer: 

“Airmic is supportive of any initiative that develops new solutions within the London market and presents greater options for risk financing to our members” 

“The Lloyd’s captive syndicate will be a fairly niche offering for captive owners, due to the premium volume required to make an application feasible, but in the right circumstances it could be a very useful tool.” 

Lloyd’s scheme comes twenty years after the last captive syndicate in 1999. The pilot involved SmithKline Beechamlater GlaxoSmithKline - whichwas run off in 2001 following a severe capacity crunch.