Shaping Lloyd’s £100bn future: how Howden drives growth

“We genuinely believe in one team for the client, and we all work together,” says Bill Cooper, managing director, Howden Capital Markets & Advisory (HCMA), describing the collaborative nature of the company’s relationship with Lloyd’s of London. 

Cooper has more than 30 years of experience and expressed his admiration for the “revitalising turnaround” at Lloyd’s over the past several years, particularly since 2018.

According to him, Lloyd’s recent strong performance has been nothing short of impressive. “Last year, Lloyd’s delivered record results, such as a return on equity of around 25 percent,” he said. 

This achievement, he suggested, was not just a reflection of the management’s strategic vision. “There’s been significant growth across the market, not just in premium rate growth, but in diversity and new businesses coming into the market,” he added. 

Howden plays a crucial role in facilitating growth and innovation within the Lloyd’s market and Cooper foresees a continued uptick, not least due to the ambition for Lloyd’s to become a £100 billion ($130 billion) market.

Providing context for this aspirational figure, Cooper referenced an earlier benchmark of £70 to £80 billion used by Lloyd’s CEO John Neal. 

“Markets continue to grow, and will continue to grow, so Lloyd’s has adjusted the target accordingly,” Cooper explained.

Reaching out to new audiences

Cooper highlighted two key initiatives supporting this ambition. 

First, Lloyd’s senior executives are engaging extensively with multinational insurers, exemplified by Aviva’s recent acquisition of Probitas, a Lloyd’s business. 

“Lloyd’s is in touch with some of the other very large multinational insurers about either building a business in Lloyd’s or perhaps acquiring a business that’s already in Lloyd’s,” Cooper said.

Second, Cooper mentioned Lloyd’s outreach to financial investors, which he believes is crucial for the market’s growth. 

He pointed to the development of London Bridge 2, a financial structure allowing investors to participate in Lloyd’s without necessarily owning an operation there. 

“It’s gradually gathering momentum with investors, and we’ve been involved with a number of investors using that platform,” he said, noting the importance of this initiative for future growth.

Lloyd’s first Capital Markets Day, held in June this year, marked a significant step in engaging the investor community.

Cooper saw this as a positive development, stating: “This was the first time we’ve seen Lloyd’s try to reach a broad and diversified investor community through a seminar or conference-type setup.” 

The event, which featured presentations from all senior executives, aimed to make it easier for investors to access Lloyd’s and provide capital to the market.

Keeping Lloyd’s in good shape

Howden plays a crucial role in facilitating the growth of Lloyd’s by connecting risk with capital and providing strategic guidance. 

“Howden is one of the largest producers of business into Lloyd’s,” Cooper explained. 

He stressed the importance of a strong Lloyd’s for the London broker community, stating: “We have a big interest in helping Lloyd’s to be healthy and grow and be more diverse, so that we can provide our clients, in turn, with more solutions.”

Cooper highlighted Howden Re’s unique position in the market, particularly its integrated Capital Markets Group, which combines reinsurance broking with investment banking expertise. 

This dual capability allows Howden Re to assist new and established businesses in optimising their capital structures and securing the necessary funding to thrive within Lloyd’s.

“There’s been significant growth across the market.”

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Looking forward to continued growth

Discussing opportunities for investors, Cooper noted the increasing interest from entrepreneurial startups in entering Lloyd’s. 

“We’ve helped three or four of these over the last 12 months to set up operations at Lloyd’s,” he said, citing the example of Envelop Risk, a cyber reinsurance intermediary that Howden Re assisted in establishing a platform at Lloyd’s.

As Cooper sees it, the future for Lloyd’s and Howden Re is bright. 

He emphasised the collaborative nature of Howden Re, stating: “We genuinely believe in one team for the client, and we all work together.

“There are no barriers across the firm to helping teams work together to support the client,” he added.

In closing, Cooper expressed his excitement about current market conditions. “We have attractive market conditions today, and it looks as though they’re going to stay that way for the next few years.

“Lloyd’s has an opportunity, and they recognise it, to be right at the centre of that growth. We’re very excited about how we can support the market with that continued growth,” he concluded.

Bill Cooper is a managing director at Howden Capital Markets & Advisory. He can be contacted at: bill.cooper@howdencma.com  

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