Lloyd's exits US admitted business to focus on E&S and reinsurance

Specialist re/insurance marketplace  Lloyd's of London has decided to exit three US admitted markets in an effort to strengthen its focus on the US reinsurance and excess and surplus (E&S) insurance business.

Lloyd's will relinquish its admitted licences in the US Virgin Islands, Kentucky and Illinois, which together represent $215 million of Lloyd’s annual US premium income.

The move is a part of its strategy to focus on its core businesses where it is the market leader.

New business will be allowed to continue for 12 months. After July 1, 2021 no new business or programmes will be accepted on the US licensed platforms.

Lloyd’s said it will be working with the regulators in the licensed territories to develop plans to non-renew the business with "as little disruption to the local markets and policyholders as possible".

"This decision was not related to the local markets or the business we write under the licences, rather it was a recognition that E&S business is a better fit for our underwriters given the market’s innovative nature and expertise in emerging risks," Lloyd's said in a market bulletin. "Lloyd’s believes that the product flexibility of the E&S space is key to sLloyd’s strategic vision."