Lloyd’s forms independent protected cell company in UK

Lloyd’s of London has sponsored the formation of an independently owned and managed protected cell company in the United Kingdom, London Bridge Risk PCC Ltd., which insurance-linked securities investors can access to deploy capital.

The U.K.’s Prudential Regulation Authority and Financial Conduct Authority have granted regulatory approval to set up the multi-insurance special purpose vehicle,  Lloyd’s said in a statement Wednesday.

The protected cell company will provide access to both U.K. and international investors to deploy capital into the Lloyd’s market.

Lloyd’s members will be able to use the new vehicle to manage their capital requirements by attracting new classes of investors such as pension funds, benefiting from reduced set-up times and lower transactional costs, Lloyd’s said.

London Bridge Risk’s insurance management services will be provided by Bermuda-based Horseshoe Insurance Services Holdings Ltd., which specializes in the management of ILS vehicles and operates across multiple jurisdictions.

Artex Risk Solutions Inc., the captive and alternative risk transfer solutions unit of Arthur J. Gallagher & Co. acquired Horseshoe in 2019.

“Through our sponsorship of the London Bridge Risk PCC we will give investors the option of a new tax transparent way to participate in the market with standardized documents and a much simpler repeatable process,” Burkhard Keese, CFO of  Lloyd’s, said in the statement.