Cobalt Insurance Holdings and Capita Managing Agency (CMA) have received ‘in principle’ approval for the launch of their shariah-compliant syndicate, Cobalt Syndicate 1438, from the Lloyd’s Franchise Board.
The syndicate would be Lloyd’s first shariah-compliant syndicate, and Cobalt founder Richard Bishop said the aim now is to work closely with CMA and Lloyd’s to secure full approval.
“We are delighted to be working with Capita Managing Agency on the launch and operation of the syndicate,” Bishop said.
“To create Lloyd’s first ever fully shariah compliant syndicate is a significant step for Cobalt and will demonstrate Lloyd’s reputation for innovating solutions for emerging markets.”
Cobalt plans to begin underwriting in the first quarter of 2017, and its initial focus will be on developing a property and specialty focused book of commercial business from the emerging and developing markets throughout the MENA and Asian regions.
It will be less acquisitive of business from the more established markets of North America and Europe.
Bishop continued: “We are delighted to have been given approval in principle and we are excited at the potential for both Cobalt and the market with the launch of our new syndicate.”
Cobalt Syndicate 1438’s number is the Islamic calendar’s number for the year 2017.
The syndicate’s active underwriter will be announced imminently, as well as details of the syndicate’s principal capital providers, according to Cobalt.
Bishop added: “We have been working to build a panel of highly rated and respected institutions and we have been delighted with the response.
“The aim of the syndicate is to look to underwrite new business from emerging markets and in doing so working with others in Lloyd’s to extend their participation in those markets.”
Cobalt Insurance Holdings, Capita Managing Agency, Lloyd's, London, UK