It’s been revealed that London Bridge Risk PCC (LBR PCC) – the protected cell company whose formation application was sponsored by Lloyd’s as part of the Future at Lloyd’s strategy – is the vehicle through which Nephila Capital funded newly launched Syndicate 2358.
“I am again delighted to see LBR PCC being used to support further ILS (insurance-linked securities) investments at Lloyd’s and to welcome such a prevalent ILS investor as Nephila to the platform,” commented Lloyd’s chief financial officer Burkhard Keese when the insurance marketplace made the announcement.
“This underlines the importance of this initiative to the Lloyd’s marketplace and shows there is real momentum behind ILS support of Lloyd’s, which is great to see.”
In November, Ontario Teachers’ Pension Plan Board became the first investor to provide capital via LBR PCC. The administrator of the largest single-profession pension plan in Canada has since provided a second tranche of capital through the protected cell company.
Meanwhile Nephila Syndicate chief executive Adam Beaty stated: “Using the LBR PCC structure was an efficient way to bring our investors’ capital into Lloyd’s to back our new syndicate. It is encouraging to see an initiative like LBR PCC being introduced to the market by Lloyd’s, and we are pleased to have had the opportunity to support it.”
Operating under the UK’s risk transformation regulations, the protected cell company provides an access point for local and international investors alike to deploy funds in a tax-transparent way into the Lloyd’s market.