Carbon Underwriting Limited (Carbon), the specialist, independent managing general underwriter (MGU) and Lloyd’s syndicate, has placed a new Lloyd’s property consortium with independent reinsurance broker, Howden Re.
The placement marks the first Variable Delegated Underwriting Authority consortium as well as the first consortium supporting a Syndicate in a Box.
Carbon says the placement gives it and the consortium members – which include Beazley and RenaissanceRe – the flexibility to respond to more challenging and specialist risks.
At the same time, it will provide them with access to capacity from a single underwriting source, thereby increasing the efficiency of the placement process.
This also represents the first consortium to be placed via Carbon’s technology ecosystem, Graphene, that has been built to manage all delegated authority business and provide consortium partners access to Carbon’s live data analytics.
“We are absolutely delighted that this consortium with our blue chip panel marks so many firsts for the London market and we recognise the value that these arrangements can bring in terms of capacity, distribution and expense management,” said Carbon CEO Nick Tye.
“This successful placement goes to the core of our ambition of being recognised as the Lloyd’s benchmark for Delegated Underwriting Authority business. With this consortium in place we will be able to generate up to £17.95 million in ceded premium income to the partners,” he explained.
“Graphene was pivotal in securing the consortium. The ability to consume multiple years of detailed historical data in a structured manner enabled insightful and transparent analysis that identified key trends and patterns. I could not be more proud of our team on this tremendous achievement and to end the year on such a high note.”
David DeJong, Howden Re Executive Director, also commented: “The successful completion of this placement with high quality consortium partners, demonstrates the value these structures can offer in terms of flexible portfolio management for syndicates seeking growth in profitable areas.”
“The Carbon team clearly offer a unique ability to identify, analyse and select the right portfolios of business on behalf of the panel using their tech platform Graphene to help inform their underwriting. Consortium offer a more efficient way to bring additional Lloyd’s capacity to Carbon’s long-standing relationships.”