Apollo Launches Modern-Era Captive Syndicate at Lloyd's

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June 04, 2024 |

A collection of skyscrapers reaching towards the clouds in a blue sky, seen from street level looking upwards.

Apollo Syndicate Management (Apollo) recently announced the launch of the first "modern-era" captive insurance syndicate at Lloyd's. The captive syndicate will be managed by Apollo and is in partnership with a "major global client," according to the statement.

With this initiative, large clients with a captive insurance company can retain risk through their own Lloyd's-rated syndicate instead of via more traditional captive insurance models. This option significantly increases risk retention flexibility, according to Apollo.

As per Lloyd's website, a captive syndicate is a Lloyd's syndicate set up by an enterprise to retain first-party or related third-party risks. (Third-party business is not allowed to be written in a captive syndicate.) Establishing a captive syndicate offers cost efficiency through Lloyd's international underwriting permissions, reduces reliance on fronting arrangements, provides control over coverage terms, and benefits from Lloyd's financial strength rating, lowering collateral requirements. This model also allows captives to manage risks more effectively across multiple territories, according to Lloyd's.

This latest development in Apollo's managing agency portfolio follows recent launches, including Envelop SPA 1925, ASR Syndicate 2454, and NormanMax Syndicate 3939.

Dawn Miller, commercial director, Lloyd's, said, "We are delighted to welcome Captive Syndicate 1100, which is the first syndicate to be launched under Lloyd's revised Captive syndicate model. As part of our ongoing work to provide specialist risk solutions for our customers, we have sought to align our captive structure with the needs of third parties seeking access to operational benefits through Lloyd's global insurance expertise, license network, and financial strength ratings. We look forward to welcoming further businesses to our captive platform in the near future."

June 04, 2024