Aon-Berkshire sidecar has generated business for Lloyd’s
The sidecar recently formed by Aon and Berkshire Hathaway, whereby the latter takes a 7.5% quota share on all retail subscription business placed by Aon with some Lloyd’s participation, has resulted in more business being placed in the Lloyd’s Market, according to a letter seen by Intelligent Insurer.
According to the letter, apparently sent by an Aon representative to Richard Ward, the chief executive of Lloyd’s, in the second quarter of this year (the first full quarter of the vehicle being operational) 1,192 policies were placed with sidecar participation, covering $710m of gross premium in total.
The letter also states that some 27 percent of those placements resulted in an increased London order either through business being placed in London for the first time, or the sidecar order being incremental to the existing London order. In addition, the letter states, that on a further 19 percent of placements, the sidecar was instrumental in getting a difficult placement completed, implying that on 45 percent in total there was no signing down of the Lloyd’s order.
An Aon spokesperson would not confirm the letter but did state that Aon had always said that the Berkshire Hathaway sidecar would be good for clients, good for the London market, and good for Lloyd’s.
The letter went on to say that the overall premium volume Aon Risk Solutions has placed into Lloyd’s so far this year had also grown – by 17 percent from January 1 to June 30 compared with the same period last year. The highest rates of growth were in energy, marine, and property, the letter said, which have some of the highest rates of sidecar utilisation.
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk