We operate an electronic peer-to-peer marketplace for the syndication and trading of insurance risks at Lloyd’s of London.
London Bridge Risk PCC is a transformer vehicle, enabling Qualified Investors to participate in the underwriting of insurance risks at Lloyd’s of London by providing third-party capital to the Lloyd’s market through the issuance of fully collateralised contracts of reinsurance to Lloyd’s Members.
Our aim is to create an more effective and efficient marketplace for Lloyd’s Members, while opening up new investment and liquidity opportunities. Protection buyers and brokers who build their programs around our marketplace can be confident that they are getting the right coverage at the right price.
State-of-the-art quoting language enables protection sellers to precisely state the amount of coverage they are willing to provide and the premium they are willing to accept, giving alternative reinsurance investors unprecedented access to insurance risk and unparalleled control over their reinsurance portfolios.
At the centre of our platform is an order-driven, peer-to-peer trading venue, programmatic auction and placement system. Our technology-driven solutions deliver seamless syndication and trading of quota-share reinsurance contracts that provide access to underwriting returns from market participants.
A streamlined user-interface enables protection buyers and protection sellers to place multiple orders in both primary markets and secondary markets. A programmatic auction system matches buy and sell orders, then reports the final trades and prices using price discovery and allocation mechanisms.
Our fully-integrated marketplace allows reinsurance contracts to be placed in virtual data rooms, to which, selected investors are given access. Secure and stable electronic networks with independent custodians and administrators ensure the segregation and security of all clients assets and accounts.
Independent administrators provide a segregated trust account for each new issuer of collateralised contract on the marketplace. The contract collateral is drawn down from the protection seller(s) treasury account and held at Lloyd’s of London. The contract premium is drawn down from the protection buyers’ treasury account(s) and held at Lloyd’s of London. The collateral and premium are held at Funds at Lloyd’s until contract expiry or a claim under terms and conditions of the contract.
All market participants are required to open a segregated account with a custodian bank. No buy or sell order will be accepted without: (a) the buyer having sufficient funds in their treasury account on a cleared basis, and/or (b) the seller having sufficient securities in the Central Securities Depository (CSD). Any open buy orders will reduce the buyers’ available balance until the orders are fulfilled or cancelled. There is no physical settlement of securities, which remain lodged in the CSD at all times.
Unique in its purpose and design, our platform provides access to reinsurance-linked returns from the Lloyd’s market. Participating reinsurers can enter into a quota-share reinsurance agreement with a specific Lloyd’s Member, thereby gaining direct exposure to member-linked underwriting performance.
Each participating reinsurer operates as a protected cell company, sponsored by investors through private funds or managed accounts with bespoke investment mandates. This enables participating reinsurers to underwrite transactions and direct asset management through in-house of third-party asset managers.
Most participating reinsurers combine reinsurance premiums with a proprietary investment strategy to generate superior risk-adjusted returns. Other participating reinsurers engage third-party asset managers to generate investment returns, focusing more on the underwriting component of each transaction.