Global speciality insurer and reinsurer Brit has launched Sussex Specialty Insurance Fund (SIF).
SIF will allow Sussex to offer institutional investors direct access to Lloyd’s-underwritten specialty insurance and reinsurance through an insurance-linked securities (ILS) fund structure.
It will allow access to Lloyd’s by providing capital to support Syndicate 2988, Brit’s third-party capital backed syndicate which is moving into its fourth year of operation. Syndicate 2988 has nearly $200 million of stamp capacity for 2020 and writes business alongside Brit’s main syndicate.
The fund will enable investors to access a diversified basket of risks from across the Lloyd’s market, underwritten by Brit’s global platform.
This fund will sit as part of Brit’s Sussex Capital ILS platform, adding to the breadth of Sussex ILS funds. This includes the property catastrophe reinsurance focused diversified fund and the worldwide property Cat sidecar, launched in 2018 and 2015 respectively.
Matthew Wilson, CEO of Brit, said: “Brit has worked closely with Lloyd’s as part of its strategy for the future at Lloyd’s and the launch of Sussex Specialty Insurance Fund is closely aligned to the objectives laid out in its recent blueprint, in particular around capital.”
He continues: “We believe that we have designed a compelling proposition for institutional investors giving them access to Lloyd’s risks underwritten by our market leading teams that are closely aligned to our own book.”
John Neal, CEO of Lloyd’s, commented: \"This is exactly the type of initiative that Lloyd’s is eager to support. It is encouraging to see Brit working with us and playing an active part in the future at Lloyd's as we look to make it easier and simpler for new sources of capital to enter the market and attach to risk.”
He adds: “It is the first time alternative capital will be able to access Lloyd’s in this way and is another demonstration of Brit’s commitment to being truly innovative.\"
In November last year, Brit launched a multi-arrangement insurance purpose vehicle (mISPV) under the UK’s ILS regime, Sussex Capital UK.
Sussex Capital UK was the first transformer vehicle to be given permission by the Prudential Regulatory Authority under the new regime to carry on the activities of a mISPV writing general collateralised reinsurance for multiple cedants via Brit’s distribution network in the London market.