Compre agrees £200mn renewable ADC deal with Lloyd’s syndicate

Compre has entered into a retrospective structured adverse development cover (ADC) transaction with a Lloyd’s syndicate, covering approximately £200 million in reserves from the 2023 and prior years of account.

The whole-account transaction covers a multi-line portfolio of property and casualty business and assumed reinsurance. It is designed to provide greater certainty around adverse development while supporting the syndicate’s balance sheet management and capital optimisation objectives.

The structure includes a variable premium arrangement, while allowing the syndicate to retain its assets and investment income. This is intended to align the cover with the client’s changing capital and balance sheet requirements.

The syndicate will retain responsibility for the ongoing management and administration of underlying claims, with no claims administration transferring to Compre.

The transaction also includes a renewable element. The next renewal is expected to be considered in the first quarter of 2027, with the structure intended to be reviewed annually thereafter.

Rachel Bardon, chief underwriting officer at Compre, said: “This transaction is a strong example of how we are continuing to evolve our retrospective proposition to meet clients’ changing capital and balance sheet needs. By combining our expertise in structured reinsurance with a renewable approach, we can provide a solution that addresses earnings volatility and supports capital optimisation while allowing the client to retain its assets and claims administration. The recurring nature of the structure also reflects the value of building longer-term partnerships with clients, rather than viewing retrospective reinsurance as a one-off transaction.”

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