Investors set to back new Lloyd’s vehicle

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.

Formed by Richard Watson, the former chief underwriting officer at Hiscox, and his former colleagues Russell Merrett and Stuart Bridges, Inigo is a new specialty re/insurance holding company.

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.

The sources also highlighted the “opportune” timing of the deal, due to the hardening of insurance rates throughout the Covid-19 pandemic.

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.”

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