Brit offers diversified risks with new ILS fund

Global specialty (re)insurer Brit has today launched the Sussex Specialty Insurance Fund (SIF), to offer institutional investors direct access to specialty insurance and reinsurance underwritten by Lloyd’s.

The SIF will use an insurance-linked securities (ILS) structure; this is where risk is reduced by using financial instruments to secure risk and transfer it to investors in the capital markets.

The new fund will access Lloyd’s by providing capital to support Syndicate 2988, Brit’s third-party capital-backed syndicate.

The ILS fund aims to enable investors to access a diversified basket of risks from across the Lloyd’s market, underwritten by Brit’s global platform.

Matthew Wilson, chief executive at Brit, said: “Brit has worked closely with Lloyd’s as part of its strategy for The Future at Lloyd’s and the launch of Sussex Specialty Insurance Fund is closely aligned to the objectives laid out in its recent blueprint, in particular around capital.

“We believe that we have designed a compelling proposition for institutional investors, giving them access to Lloyd’s risks underwritten by our market leading teams that are closely aligned to our own book.”

Funding

The SIF will form part of Brit’s Sussex Capital ILS platform. Other funds available through the platform include the Diversified Fund, which focuses on property catastrophe reinsurance, and the Worldwide Property Cat Sidecar. These ILS funds launched in 2018 and 2015 respectively.

Syndicate 2988, which has been in operation for four years, has nearly £200m of stamp capacity for 2020 and writes business alongside Brit’s main syndicate.

John Neal, chief executive at Lloyd’s, added: “This is exactly the type of initiative that Lloyd’s is eager to support.

“It is encouraging to see Brit working with us and playing an active part in The Future at Lloyd’s as we look to make it easier and simpler for new sources of capital to enter the market and attach to risk.

“It is the first time alternative capital will be able to access Lloyd’s in this way and is another demonstration of Brit’s commitment to being truly innovative.”