Lloyd’s ILS platform London Bridge can sweep up $1bn capital in ‘24
Lloyd’s infant ILS platform London Bridge laid claim to over $750 million in total issuance to end-2023 and holds hopes that a rising track record for performance and the platform's step-up in transparency could muster a $1 billion year.
“I think the appetite is there,” CFO Burkhard Keese told reporters following presentation of Lloyd's full-year 2023 results.
A slower start to the platform followed “quite a difficult capital environment last year” where investors had “great underwriting positions” to choose from, but still suffered “fatigue” from ILS foibles, he said.
“Once we have overcome this with appropriate performance and transparency, I think this is really achievable to add another billion for London Bridge in the next year,” Keese said.
Keese is drawing his early optimism less from capital flows to date than new engagement with the platform. Keese claims some 90 - 95% of all new structures at Lloyd's are tied in to London Bridge.
“That is the right benchmark, and the rest will follow,” Keese said. “It will be used and market timing depends on markets.”
For the $750 million raised and supporting underwriting at Lloyd's across 13 cells, management sounds most proud of its first 144A cat bond, sponsored by Beazley.
Ariel Re's move to increase its program and a new cell supporting Markel's ILS unit Nephila were also called out.
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