UK-based specialty insurer Beazley intends to set up a marine war consortium at Lloyd’s of London that would provide as much as $1bn of underwriting capacity.
Under the proposal, the consortium would allocate $500m for hull war and $500m for cargo war, adding to the level of capacity currently available in the market.
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Beazley would lead the consortium, which is expected to be backed mainly by Lloyd’s syndicates and other insurers in the London market.
Beazley CEO Adrian Cox said: “This consortium demonstrates the agility of the market to respond to the needs of global supply chains and I am pleased that under Beazley’s leadership we have been able to swiftly coalesce our market’s combined expertise to deliver a highly specialist solution that will assist in keeping global trade moving.”
The company said it also plans to bring in further third-party capital over time, with the ability to scale participation.
The insurer said the initiative is designed to bolster the supply of marine war cover and reinforce the resilience of international supply chains.
It is intended to support the maritime industry amid what Beazley described as a complicated and shifting risk backdrop in and around the Strait of Hormuz.
Beazley added that the Lloyd’s and London Marine War market has continued to provide solutions to facilitate global trade during the ongoing war in Iran, and said the additional capacity is aimed at maintaining insurance support as circumstances change.
Lloyd’s CEO Patrick Tiernan added: “The consortium demonstrates the Lloyd’s model at its best: capital and expertise aligning, not only to address immediate pressures but to anticipate future requirements.”
Separately, the insurer last month outlined plans to buy kWh Analytics, a US managing general agent focused on renewable energy.
The financial terms were not disclosed.
Beazley said the acquisition is intended to build its capability in modelling, underwriting and managing risks tied to renewable energy portfolios.
Also last month, Zurich Insurance Group raised SFr3.9bn ($5.02bn) via an accelerated book-building process to help finance its planned acquisition of Beazley.
