FCA-regulated adviser to Lloyd’s investors, Argenta Private Capital Limited (APCL), has partnered with Helios Underwriting to provide investors with a “unique way to access the Lloyd’s of London market.”
APCL explained that this exclusive arrangement with Helios will enable its clients to participate in a portfolio of syndicates, curated by Helios’ CEO Martin Reith, “without the need to own the underlying capacity.”
This structure is known as a Members’ Agent Pooling Arrangement (MAPA), which allows members at Lloyd’s to spread their risk by underwriting on a pooled basis, with other members, across many syndicates.
APCL said the selection of syndicates will be underwriting across most lines of business written in the Lloyd’s market, ranging from US property and casualty to cyber and satellite.
The firm added that the launch of this product comes at a time when market conditions have been improving for several years, with the current returns to investors at Lloyd’s set to be at 15-year highs.
Robert Flach, Managing Director of APCL, commented, “Now is the time, given current market conditions, to commit capital to underwriting, rather than buying capacity.”
Argenta also observed it can facilitate what it describes as a limited number of “starter homes”, without any exposure to the historic back years that usually come with vehicles for sale, which have been granted the rights by Helios to participate in a selection of syndicates for 2024 only, “enabling new investors to participate on what is expected to be a profitable underwriting year.”
According to APCL, expected returns on capital, excluding any returns that might be generated on the capital provided, of c 24% for the 2024 year of account for its clients.
Kate Tongue, Director of APCL, said, “We are excited to be working with Helios to provide new and innovative solutions for clients to access capacity. Our forecasts for 2023 and 2024 are the strongest for a number of years, which means the opportunity for investors to get involved at Lloyd’s has never been greater.
“These vehicles are a simple and efficient way for individuals to access Lloyd’s returns for the first time which we believe will be attractive to a wider range of investors.”
