Our solutions – Captive Syndicate
Captive Syndicate: a new route into Lloyd's
We have extensive experience of launching and managing a variety of businesses at Lloyd’s, and we can now provide the same range of expertise and services to new and established Captive Owners and their Managers to help them achieve greater consistency and control over their risk management strategy.
We achieve this by establishing a Captive Syndicate at Lloyd’s which offers, licensed paper, reduced reliance on fronting partners and competitive fees. It’s a highly effective alternative for Captive Owners to diversify their risk financing, reduce collateral requirements and minimise costs.
Asta is independent which means we don’t underwrite via our own risk-bearing entity. We focus instead on building exclusive partnerships with our clients and helping them achieve their goals and ambitions.
Captive Syndicate: who is it for?
The flexible platform provided by a Lloyd’s Captive Syndicate could suit any Captive writing First Party or related Third Party risks – from the large blue-chip to the smaller privately owned Captive – with multi-national risk exposure and seeking a cost-effective alternative to fronting, more control over its working insurance layers, and reduced tax and regulatory risk. The types of captives that are suited to the syndicate model include, among others:
- Single Parent
- Protected Cell Companies (PCCs)
- Incorporated Cell Companies (ICCs)
- Segregated Account Companies (SACs)
- Risk Retention Groups (RRGs)
Captive Syndicate: the benefits
A syndicate at Lloyd’s offers a wide range of potential benefits for both Captive Owners and their Managers:
- UK domiciled and regulated Captive (re)insurance solution at Lloyd’s, offering stability and security.
- Access to Lloyd’s global license network.
- Cost efficient relative to other Captive domiciles, depending on insured geography and current fronting fees.
- Ability to host multiple cells operating under a “hub and spoke” arrangement
- Flexibility to accommodate fronting in territories where Lloyd’s is unlicensed.
- Consistent capital requirements proportionate to risk and compliant with Solvency II.
- Greater consistency, certainty and control over risk management strategy.
- 90-day application process, matching the timescale offered by other Captive domiciles.
- Lloyd’s financial strength rating: AA- Fitch, A+ S&P, A A.M. Best, which could reduce fronting collateral where required.
- Become part of the 330-year-old Lloyd’s marketplace which has an established global brand and reputation.
Captive Syndicate – where can it accept risk?
As a Captive Syndicate at Lloyd’s, the need for fronting will not be required where Lloyd’s has licences to underwrite. Through its license network, Lloyd’s is able to accept risks in over 200 territories and over 70 jurisdictions worldwide.
Captive Syndicate – how does it work?
Unlike a traditional syndicate, the Captive Syndicate model is unique in that the insured entity (the Captive Owner) is also the capital provider. This alignment of interest between a Captive Owner and its capital is furthered by the absence of a fronting insurer which in most cases becomes redundant due to Lloyd’s global licensing, allowing the Captive Syndicate to accept risk in multiple territories and jurisdictions.
Success through partnership
We will work with you and your Captive Manager to guide you both through the application process and to develop the scope of services needed to effectively manage your Captive Syndicate at Lloyd’s.
Entry to Lloyd’s
Navigating the route into the world’s leading specialty insurance market requires the right partner. Our experienced and expert project team will act as your sponsor and advocate, and will guide you throughout the entrant process:
- We’ll work with you directly or in partnership with your Captive Manager to structure a Captive Syndicate solution that is right for you.
- We’ll sponsor your application and support you through the due diligence and decision stages.
- We’ll then support you to “make it happen”, guiding you through the implementation of your plan before securing final approval for you to start operating your Captive Syndicate at Lloyd’s.
How do we support you?
As the Managing Agent of your Captive Syndicate at Lloyd’s, our primary role is to ensure compliance with Lloyd’s Principles of doing business. These cover a range of oversight responsibilities, and part of our job will be to ensure they are proportionate and applied correctly to the size, structure and organisation of your Captive Syndicate. These are the areas of oversight we will manage on your behalf:
- Underwriting Management
- Catastrophe Exposure
- Outwards Reinsurance
- Claims Management & Reserving
- Capital, Investment & Liquidity
- Regulatory and financial crime
- Operational Resilience
If needed, we can provide additional, flexible services tailored to fit seamlessly with those provided by your Captive Manager to ensure nothing is overlooked or duplicated. We can provide support to you and your Captive Manager in the following areas:
Capital modelling, reserving and pricing in line with Solvency II.
Finance, accounting and management, statutory and regulatory reporting.
- Risk Management
Flexible risk management framework to meet the demands of multiple regulators.
- Information Technology
Solutions for IT infrastructure, systems, regulatory and operational requirements.
- Company Secretarial
Robust governance framework that complies with legislation and regulation.
Payroll, employee relations, employment contracts and reference checking.
Why work with Asta?
- You’ll need a managing agent to operate your Captive Syndicate at Lloyd’s. Asta is the leading third-party managing agent providing a range of syndicate solutions at Lloyd’s.
- You’ll have your Captive Syndicate launched and operational at Lloyd’s as quickly as possible, typically within 90 days.
- You’ll benefit from first-class oversight and governance to ensure compliance with Lloyd’s Principles and regulatory requirements.
- You’ll benefit from the economies of scale made possible by a standardised platform – your fees will be cost-effective when compared with fronting arrangements.
- You’ll benefit from our independence. Asta doesn’t have its own syndicate or any capital at risk, which means our sole focus is on meeting the needs of our clients who do.