Speciality insurance marketplace Lloyd’s of London is reportedly in discussion with American International Group (AIG) and Chubb to strengthen its US business.
Lloyd’s of London CEO John Neal has planned meetings with AIG and Chubb to explore potential opportunities for selling more of their insurance products through its platform, Reuters reported.
The focus on the business revival follows combined losses of $3.9bn, which Lloyd’s sustained over the last two years due to natural catastrophes.
Under the leadership of Neal, who took the reins of the company in late 2018, Lloyd’s is trying to bolster its future prospects.
Neal told the news agency that his strategy includes shifting Lloyd’s geographic focus, including concentrating on developed markets with strong growth potential such as the US. The US and Canada represented for 51% of Lloyd’s business in 2018.
“We are talking to all of the big insurers here…to say, How do you feel about the marketplace and what opportunities can we help you realise in the Lloyd’s marketplace?” Neal told the news agency, adding that both AIG and Chubb are interested in the deal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Neal said that specialty insurance, liability insurance and professional lines insurance offer growth potential.
The commercial, specialty, corporate insurance and reinsurance business is worth $750bn, and half of those premiums come from the US, Neal added.
To reshape its business and reduce operational costs, Lloyd’s of London announced in May that it will split its operations into two automated exchanges and transfer much of its operations online.