Highlighting achievements from 2024 when $1.92 billion of capital was deployed by means of the Lloyd’s insurance-linked securities (ILS) construction, Deputy CFO Alexandra Cliff stated right this moment that the pipeline for the London Bridge platform stays wholesome.
2024 noticed the London Bridge 2 PCC gaining important traction, as 19 particular person cells have been established inside the construction to help third-party capitalised reinsurance and danger switch funding preparations for Lloyd’s market members.
Whereas these preparations resulted in US $1.9 billion of capital deployed by means of London Bridge 2, Cliff additionally highlighted the bigger determine of $2.5 billion of capital dedicated to the construction final 12 months, which we had reported before.
Cliff, who’s taking over the CFO role at Lloyd’s in May, when incumbent Burkhard Keese steps back from that role (he’s set to stay a strategic advisor targeted on further-developing the chance switch car London Bridge 2) additionally highlighted one of many achievements for the Lloyd’s ILS construction in 2025 up to now throughout a media name right this moment.
“London Bridge 2 is accepted by our buyers as an revolutionary, versatile and extremely environment friendly car for accessing the Lloyd’s market,” Cliff defined.
Since 2024, Cliff stated, “We’ve issued one cat bond, the Flood Re Imaginative and prescient 2039 bond, which closed this week.”
The £140 million London Bridge 2 PCC Limited (Vision 2039 – 2025-1) is the primary disaster bond for UK flood reinsurance pool Flood Re, its first time tapping the capital market on this technique to help its retrocession program.
As we additionally highlighted in our article on that deal completing earlier this week, Imaginative and prescient 2039 marks the primary use of the London Bridge 2 car for an insurance-linked securities (ILS) association by a non-Lloyd’s entity.
That’s an vital step, because it reveals how Lloyd’s can facilitate entry to the capital markets for reinsurance for extra than simply its personal syndicates and members, which could possibly be an additional supply of exercise for London Bridge 2 sooner or later.
London Bridge 2 PCC was used for one disaster bond issuance in every of 2023 and 2024, each sponsored by market participant Beazley, the $100 million London Bridge 2 PCC Limited (Fuchsia 2023-1) and the $200 million London Bridge 2 PCC Limited (Fuchsia 2 – 2024-1) transactions.
In 2025, we now have the already accomplished £140 million Imaginative and prescient 2039 cat bond, but additionally a second deal that’s nonetheless being marketed for re/insurer Brit, the at the moment $100 million London Bridge 2 PCC Limited (Lapis 2025-1) transaction.
Further London Bridge 2 exercise will also be anticipated now that eight Lloyd’s managing brokers are already utilising the construction as a mechanism for sourcing third-party reinsurance capital to help syndicates and members available in the market.
The disaster bond exercise can be prone to construct and already 2025 is about to see probably the most disaster bonds from London Bridge of any 12 months up to now, as we confirmed above.
Commenting on the outlook for the Lloyd’s market’s London Bridge 2 ILS construction, Deputy CFO Cliff stated, “Our pipeline stays wholesome.”
Burkhard Keese later highlighted London Bridge 2 because the primary achievement he has been pleased with throughout his time working at Lloyd’s, saying it was “actually wanted for London as a complete.”
