Lloyd’s reaches $1.92bn of capital deployed through London Bridge ILS platform

The Lloyd’s insurance and reinsurance market has reported that its London Bridge risk transformation and insurance-linked securities (ILS) platform has now seen $1.92 billion of capital deployed through its cells, with $2.55 billion of capital committed.

This new capital deployment milestone for the London Bridge platform was reached at the end of 2024.

In total, 19 cells have been established across the two risk transformation companies that make up the London Bridge platform, London Bridge Risk PCC Limited and London Bridge 2 PCC Limited.

The $1.92 billion of capital has been deployed via a range of transactions and funding arrangements through these cells, with Lloyd’s saying that in total $2.55 billion of capital has been committed from institutional investors.

It’s impressive, as Lloyd’s had been targeting $1 billion of capital flow for the London Bridge platform in 2024.

Lloyd’s said today that now eight managing agents in the market are actively using the London Bridge platform, while 10 new institutional investors are supporting risks underwritten in the Lloyd’s market.

Burkhard Keese, Lloyd’s Chief Financial Officer, commented on the news, “Making the Lloyd’s market more attractive and accessible to institutional investors continues to be a strategic priority for Lloyd’s. We are delighted with the success of the London Bridge platform, which has now become a meaningful source of capital and risk transfer capacity for the Lloyd’s market.

“London Bridge has now established itself as one of the most flexible and responsive risk transformation platforms in the ILS market, confirming our belief that Lloyd’s and the UK market remain a great place for institutional investors to access global (re)insurance risk.”

Lloyd’s highlighted some notable recent transactions that have utilised the London Bridge ILS platform.

These include: the launch of Fidelis Syndicate 3123 at Lloyd’s with the support of third-party private capital: AIG’s launch of Syndicate 2478 supported by third-party capital from funds under Blackstone management, channelled through the London Bridge 2 PCC structure; and Beazley’s recent second property catastrophe bond, the Fuchsia 2 -2024-1 deal from December.

The London Bridge platform is providing an efficient platform for risk and capital matching, into and out of the Lloyd’s market, enabling investors to access the returns of this insurance marketplace, while market participants can access efficient institutional reinsurance capital sources.