Brit Announces Launch of New Lloyd’s ILS Fund

Global specialty insurer and reinsurer Brit has announced the launch of a new Lloyd’s of London focused insurance-linked securities (ILS) fund, Sussex Specialty Insurance Fund (SIF).

Source: Reinsurance News | Published on December 9, 2019

Brit states that the new fund offers ILS investors access to Brit Syndicate 2988 and that it is the first fund structure of its type to offer access to Lloyd’s risks.

The SIF will access the specialist Lloyd’s of London insurance and reinsurance marketplace by providing capital to support Syndicate 2988, Brit’s syndicate which has almost $200 million of stamp capacity for 2020 and which writes business alongside Brit’s main syndicate.

Brit explains that the fund forms part of its Sussex Capital ILS platform, adding that it enables investors to access a diversified basket of risks from across the Lloyd’s marketplace, underwritten by Brit’s global platform.

The launch of SIF will expand the third-party assets managed by Brit’s Sussex Capital ILS platform, which includes its property catastrophe reinsurance focused Diversified Fund and the Worldwide Property Cat Sidecar.

Brit’s Chief Executive Officer (CEO), Matthew Wilson, commented: “Brit has worked closely with Lloyd’s as part of its strategy for The Future at Lloyd’s and the launch of Sussex Specialty Insurance Fund is closely aligned to the objectives laid out in its recent blueprint, in particular around capital.

“We believe that we have designed a compelling proposition for institutional investors giving them access to Lloyd’s risks underwritten by our market leading teams that are closely aligned to our own book.”

John Neal, CEO of Lloyd’s, added: “This is exactly the type of initiative that Lloyd’s is eager to support. It is encouraging to see Brit working with us and playing an active part in The Future at Lloyd’s as we look to make it easier and simpler for new sources of capital to enter the market and attach to risk.

“It is the first time alternative capital will be able to access Lloyd’s in this way and is another demonstration of Brit’s commitment to being truly innovative.”