Lloyd’s approves energy transition syndicate

AXIS Capital has received full approval from Lloyd’s to establish a syndicate dedicated to energy transition and plans to begin underwriting next month. 

The Bermuda-based specialty re/insurer said head of upstream energy Elliot Lyes will serve as active underwriter for Syndicate 2050.

The company said he will work alongside a cross-class team of underwriters to provide specialty insurance solutions tailored to the risks associated with replacing or displacing fossil fuels through lower-carbon alternatives.  

Mark Gregory, Head of Global Markets, at AXIS, said: “Supporting the shift to net zero represents an enormous opportunity for the insurance industry to rise to the challenge by developing the specialty coverages that organisations need throughout their energy transition journeys, while maintaining energy resilience. 

“Receiving permission to underwrite through Energy Transition Syndicate 2050 is a milestone for AXIS. 

“From April, we’ll be providing a single access point to holistic cross-class insurance solutions for energy projects that have a critical role in supporting the transition to net zero.”

AXIS first announced it had secured in-principle approval from Lloyd’s for the syndicate in December. 

It said then the syndicate would provide specialist insurance solutions for cross-class risks over the lifecycle of projects and activities associated with replacing or displacing fossil fuels through lower-carbon alternatives and supporting energy resilience during the transition phase.

Syndicate 2050 will typically underwrite the construction and operation of technologies and projects that support energy transition, the company said. In addition, the Syndicate will insure activities, such as transit, storage, and financing, that support and enable cleaner energy projects. The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident & health coverages.