Informa Insurance News 24
LLOYD'S REINSURES CENTRAL FUND IN 'LANDMARK' $650M DEAL
Lloyd’s has secured a “landmark” £650m ($908.5m) five-year cover for the Central Fund, combining insurance- linked securities (ILS) and traditional rated capital. The new structure will provide increased protection for the market against severe tail events and “further improve the quality and financial strength of Lloyd’s balance sheet”. The new multi-layered cover will reimburse aggregate payments from the Central Fund in excess of £600m up to £1.25bn. The protection, which has been structured and placed by Aon, is a layered structure supported by a newly created cell company and a panel of reinsurers. The Guernsey-based cell company, Constellation IC, is financed by JP Morgan. The reinsurers are Arch Capital, Berkshire Hathaway, Everest Re, Hannover Re, Munich Re, RenaissanceRe, Scor and Swiss Re.