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Principle 8: Investments

Managing agents should ensure syndicate investment risk is effectively controlled, informed by wider business strategy and adheres to the Prudent Person Principle (PPP) requirements.

To support this, managing agents should ensure their syndicates:

Have a clear articulation of investment objectives and risk appetites, with rationale having regard to high level business or solvency strategy ​​

Have clear investment parameters and guidelines with robust processes to monitor and report positioning against limits  ​

Integrate investment stress testing into investment management

Ensure investment performance and risk, including that of outsourced arrangements, are effectively overseen through monitoring and reporting ​​

Develop and embed a Responsible Investment Policy

Have Asset-Liability Modelling (ALM) capabilities consistent with Use Test Principles

Have robust investment governance

Investments Maturity Matrix

The Maturity Matrix for Investments is available within the Principles and Maturity Matrix document, which can be found on our Principles for doing business at Lloyd’s page.


Not at this stage as we expect Syndicates to have the same processes in place although we expect the management of investment risk to be more sophisticated dependant on the portfolio mix and the guidance allows for this proportionality.

This is a holistic approach where we combine qualitative and quantitative aspects, if we had any questions following review of your documentation, we would discuss certain elements of the portfolio with you and the managed exposure would be considered.

No, not at this stage. If a minimum will be implemented, we will inform the market.