Brit launches Lloyd’s ILS fund

Speciality re/insurer Brit has unveiled a new ILS fund that will offer investors access to Brit Syndicate 2988. It will be the first ILS structure of its type offering access to Lloyd’s risks.

The Sussex Specialty Insurance Fund will allow Sussex to offer institutional investors direct access to Lloyd’s-underwritten specialty insurance and reinsurance through an ILS fund structure.

The Fund will access Lloyd’s by providing capital to support Syndicate 2988, Brit’s third-party capital backed syndicate which is moving into its fourth year of operation. Syndicate 2988 has nearly $200 million of stamp capacity for 2020 and writes business alongside Brit’s main syndicate.

The fund will enable investors to access a diversified basket of risks from across the Lloyd’s market, underwritten by Brit’s global platform.

The fund will sit as part of Brit’s Sussex Capital ILS platform. This adds to the breadth of Sussex ILS funds, which include the property catastrophe reinsurance focused Diversified Fund and the Worldwide Property Cat Sidecar, launched in 2018 and 2015 respectively.

Matthew Wilson, CEO, Brit, said: “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, 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."

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