Hiscox plots ESG syndicate to boost Lloyd’s offer for greenest clients

Hiscox will launch a new ESG-focused Lloyd’s facility as a sub-syndicate “nested” within Hiscox 33, offering added capacity to qualifying clients who bring strong green credentials.

The new syndicate constitutes “a significant long-term growth opportunity,” Hiscox CEO Aki Hussain told his company's Q4 earnings call. Expected launch still in the first half of 2023.

The build-out will be gradual, from an early focus on existing core areas to grow with “new capabilities we will build over time,” Hussain said.

“We will utilise our existing underwriting talent and broker relationships to access clients while continuing to develop deep in-house expertise in the specialist sectors focused on the transition to the green economy, such as electric vehicles and renewables,” management said in its statement on 2022 earnings.

The facility, held within Hiscox 33 for its “early stage”, can begin by leaning on the existing stamp capacity at 33, but will have an eye out in the future for third party capital with an ESG bent.

"In time, we will be marketing this syndicate to third party capital providers," Hussain said. “It's a really exciting development for us.”

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