Lloyd's Forming Protected Cell Company To Ease Investor Access

Lloyd's of London has obtained regulatory approval to form a new protected cell company (PCC) intended to make it easier for investors to gain access to the Lloyd's market.

Formed under the United Kingdom's protected cell company legislation, the independently owned and managed London Bridge Risk PCC Limited "will provide an access point for both UK and international investors, including insurance-linked securities (ILS) investors, to deploy funds in a tax transparent way into the Lloyd's market," a Lloyd's statement said.

Lloyd's said the approval from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) was a "key milestone" for the market's Future at Lloyd's strategy.

The new platform will benefit investors by offering more transparent and efficient capital management process while allowing Lloyd's members to use the new vehicle to manage their capital requirements by attracting new classes of investors such as pension funds, Lloyd's said, adding that members will also benefit from reduced set-up times and lower transactional costs.

Standardized documentation and processes have been developed to make the process quicker and more tax transparent and to streamline the approach to regulatory approval for investors, Lloyd's said.

Horseshoe, an insurance manager and fund administrator specializing in the management of ILS vehicles and operating across multiple jurisdictions, will provide insurance management services for London Bridge Risk PCC Limited.

"As part of the Future at Lloyd's strategy, we continue to look at all ways we can make it easier and more efficient to deploy and manage capital at Lloyd's. We are delighted that Lloyd's has received regulatory approval to set up a new investment platform that will be available for all of the market to use," Burkhard Keese, Lloyd's chief financial officer, said in the statement. "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."