A group of global investors is set to invest £604m of capital in the latest Lloyd’s of London vehicle, Inigo, which is set to be the largest British insurer to be established in the last decade, according to Sky News.
The Lloyd’s of London insurance vehicle has received interest from a number of blue-chip firms including JC Flowers and Co, the Qatar Investment Authority, Caisse de dépôt et placement du Québec (CDPQ), and Oak Hill Advisors.
Sources told Sky that through the investment, Inigo will become a significant presence in the market for underwriting specialty risks.
John Neal, chief executive at Lloyd’s, has reportedly been pushing for the modernisation of the world’s oldest reinsurance market, thus making the investment a ‘coup’ for the firm.
Inigo is already active in the market having acquired StarStone Underwriting and Lloyd’s Syndicate 1301 from Enstar Group and StarStone Capital for a consideration of £22.6m.
Meanwhile, nearly £34m will be invested back into Inigo as part of the deal.
Dominic Silvester, CEO at Enstar, said: “This transaction optimises and capitalises on StarStone International’s assets at Lloyd’s and provides an opportunity to participate in a new venture with proven leadership at a time of favourable market conditions.”