Property consortium breaks new ground
Bermuda’s Renaissance Re is among those participating in a new Lloyd’s property consortium placed by specialist managing general underwriter and Lloyd’s syndicate Carbon Underwriting.
The placement with independent reinsurance broker Howden Re is the first Variable Delegated Underwriting Authority consortium and the first consortium supporting a Syndicate in a Box. It’s also the first consortium placed using Carbon’s technology ecosystem, Graphene, that was built to manage all delegated authority business, providing consortium partners secure access to live data analytics.
According to Carbon Underwriting, the consortium gives its members, which includes Beazley as well, the flexibility to respond to more challenging and specialist risks while providing access to meaningful capacity from a single underwriting source, increasing the efficiency of the placement process.
“We are absolutely delighted that this consortium with our blue-chip panel marks so many firsts for the London market, and we recognise the value that these arrangements can bring in terms of capacity, distribution and expense management,” said Nick Tye, Carbon CEO.
“This successful placement goes to the core of our ambition of being recognised as the Lloyd’s benchmark for delegated underwriting authority business. With this consortium in place, we will be able to generate up to £17.95 million in ceded premium income to the partners.”
He added: “Graphene was pivotal in securing the consortium. The ability to consume multiple years of detailed historical data in a structured manner enabled insightful and transparent analysis that identified key trends and patterns.”
David DeJong, Howden Re executive director, said: “The successful completion of this placement with high-quality consortium partners, demonstrates the value these structures can offer in terms of flexible portfolio management for syndicates seeking growth in profitable areas. The Carbon team clearly offer a unique ability to identify, analyse and select the right portfolios of business on behalf of the panel using their tech platform Graphene to help inform their underwriting. Consortiums offer a more efficient way to bring additional Lloyd’s capacity to Carbon’s long-standing relationships.”
