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Lloyd’s announces Canadian Pension Fund Ontario Teachers’ as the first investor to support underwriting through London Bridge Risk PCC Ltd

10 Nov 2021

Lloyd’s has today announced Ontario Teachers’ Pension Plan Board (Ontario Teachers’), administrator of Canada's largest single-profession pension plan, with  approximately $227.7 billion in net assets, as the first investor to provide capital through the London Bridge Risk (LBR) Protected Cell Company (PCC).

The transaction will provide reinsurance cover to a Member supporting three syndicates in the Lloyd’s market: CFC Syndicate 1988, Beazley’s Syndicate 5623 and Beat’s Syndicate 1416. Coverage will start in 2021 and will be expanded in 2022, providing initial capital in excess of £100m, which is anticipated to grow over time.

The PCC operates under the UK Risk Transformation regulations and provides an access point for both UK and international investors, including Insurance-linked Securities (ILS) investors, to deploy funds in a tax transparent way into the Lloyd’s market. Lloyd’s members can use this vehicle to manage their capital requirements by attracting new classes of investors, including pension funds, and will benefit from reduced set-up times and lower transactional costs.

“I am delighted to welcome major global pension investor Ontario Teachers’, who are well regarded in the ILS community, as the first to utilise LBR PCC to participate in underwriting at Lloyd’s. It is a great achievement to see the PCC used, on-shore in the UK, to deliver reinsurance coverage and I am confident that this will be the first of many ILS investments into Lloyd’s as investors, members and syndicates increasingly appreciate the potential of this transformer vehicle.”
Burkhard Keese - CFO, Lloyd’s
“We invest in a range of global assets, including insurance-linked securities, and are always looking for efficient opportunities to maximise returns and increase value for our members. LBR PCC provides an innovative and efficient way to simplify our investment structures as we continue to grow our global footprint.”
Nick Jansa - Senior Managing Director EMEA, Ontario Teachers’
“Beazley is pleased to see the successful launch of the first LBR PCC acting as a transformer for institutional capital to access one of our most innovative underwriting portfolios. As those portfolios continue to grow over the coming years, Beazley hopes to see further users of the new UK ILS infrastructure benefiting from low cost, efficient access to the group’s underwriting expertise.”
Adrian Cox - CEO, Beazley Group
“As a newly established syndicate, we are delighted to have been able to benefit from capital support via LBR PCC, with its pre-approved status as an onshore transformer vehicle in the UK. For a syndicate with CFC’s high growth expectations, capital delivery mechanisms like LBR PCC, that allow simplified investor access to our unique premium portfolio, are crucial when attracting sophisticated large-scale institutional investors.”
Matt Taylor - Active Underwriter, CFC Syndicate 1988
“Beat is excited to have partnered with LBR PCC in the formation funding of Syndicate 1416. Given our perpetual third-party capital outlook, LBR PCC is a strategically important innovation that allows us to efficiently connect with high quality alternative capital partners alongside our existing capacity supporters.”
Paul Rayner - Partner, Beat Capital Partners

Notes to editors

  1. Find out more about investing at Lloyd’s here and about the London Bridge Risk PCC here
  2. London Bridge Risk PCC was sponsored by Lloyd’s as part of its Future at Lloyd’s strategy: lloyds.com/futureatlloyds
  3. Lloyd’s acted as the sponsor for the application to form the new PCC. The PCC will be owned by an Orphan Charitable Trust, providing an independently managed Transformer vehicle to the market, directly regulated by the PRA and FCA. London Bridge Risk PCC Limited will provide independent services to investors and Members of Lloyd’s. Day-to-day management will be provided by Horseshoe Ltd with overall responsibility for running the PCC resting with the Board of London Bridge Risk PCC Ltd.
  4. The London Bridge Risk PCC Ltd Board is made up of three Directors: Mike Baker from Horseshoe as the CFO, Helena Whitaker from Intertrust Ltd as the CEO, and Mark Dyson from Lloyd’s as the Chair.
  5. London Bridge Risk PCC Limited’s insurance management services will be provided by Horseshoe, who specialise in the management of ILS vehicles and operate across multiple jurisdictions.  
  6. Aon Capital advisory supported negotiations for both CFC and Beazley in respect of this investment.
  7. More news and information available from lloyds.com


Enquiries to:


UK:

+44 (0) 20 7327 5111 | pressoffice@lloyds.com

+44 (0) 20 7327 5391 | annie.roberts@lloyds.com


Americas:

+44 (0) 20 7327 5111 | nathan.skinner@lloyds.com


EMEA:

+44 (0) 20 7327 5721 | elliot.maule@lloyds.com


APAC:  

+65 6870 9227 | suganthy.selva@lloyds.com    


About Lloyd’s

Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world. The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally. It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale. And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need. The Future at Lloyd's sets out our strategy to build the most advanced insurance marketplace in the world.


About Ontario Teachers’

Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with C$227.7 billion in net assets (all figures at June 30, 2021 unless noted). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific region offices are located in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded as at January 1, 2021, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com.


About Horseshoe

Horseshoe, an Artex Risk Solutions company, is the world’s largest Insurance Linked Securities (ILS) service provider, leading the way in integrated ILS solutions and fund services. With over 100 professionals and operating globally, Horseshoe specializes in insurance management, risk transformation, fund administration, actuarial advisory and corporate services. Please visit horseshoeglobal.com for more details.