Client case study: Greenlight Re Syndicate in a box 3456

Asta supports Greenlight Re Innovation with its pioneering approach to Insurtech risks

Background

Greenlight Re is an active Member of Lloyd’s providing capacity to a range of syndicates while developing a market leading reputation in identifying and supporting early stage Insurtechs and investing in 40+ Insurtechs to date.

Greenlight has a track record of building long term strategic relationships with early stage Insurtechs supporting them with:

  • Resource and expertise
  • Reinsurance capacity
  • Capital investment

In order to deliver greater support to its Insurtech partners Greenlight and Asta combined to develop an Insurtech focused syndicate to assist Greenlight in accessing Insurtech business using Lloyd’s licensing and brand.

The decision was taken to create an innovative Syndicate in a box (SIAB) given access to Lloyd’s in that way:

  • Facilitates entrepreneurial business
  • Facilitates testing and learning
  • Provides a quicker entry process and
  • Provides an efficient model

Highlights

01.04.22
Launch date
£20m
GWP year one
8
Class of business underwritten
01.04.22
Insurance businesses launched by Asta in 2022

Solution

To create a SIAB, Syndicate 3456, enabled Greenlight Re to provide capacity to its growing portfolio of Insurtechs.

A Syndicate in a box (SIAB) is a market facing syndicate that differs from a traditional syndicate in the following ways:

  • A SIAB can write less than £100m GWP in year one
  • A SIAB should predominately write short-tail business
  • A SIAB should have a projected net operating expense ratio (operating and acquisition cost) of less than 35% in its third year

SIABs offer sponsors with innovative and entrepreneurial business cases an opportunity to join the Lloyd’s market.

An Insurtech focused SIAB provided Greenlight Re with the ability to:

  • Provide a platform to support current and future Insurtech business
  • Improve our ability to support international Insurtechs
  • Benefit from Lloyd’s licenses and brand
  • Reflect Lloyd’s interest in Innovation and Insurtech
  • Introduced current and future business that would otherwise be placed outside of Lloyd’s
  • Created a partnership with leading innovations platform that will enhance access to burgeoning Insurtech risks

It has delivered:

A non-traditional, differentiated model

  • Technology focused
  • Non-cat
  • Demonstratable expertise in class
  • Prioritisation of underwriting profit over growth
  • Lead and follow with line sizes up to 100%

 

The SIAB has the benefit of oversight from Asta and adopted Asta’s Compliance\Conduct framework which has a proven track record of success.

Risk Appetite

  • Lead and follow with line sizes up to 100%
  • Early-stage MGAs
  • Broad range of insurtech opportunities in classes including Travel, General Liability, SME, Medical, Cyber and Cargo.

In Q3 2021, Greenlight began working with the Asta Business Development team and in January 2022, in principle approval was granted by Lloyd’s to establish SIAB Syndicate 3456, which commenced underwriting effective April 1st, 2022.

It signalled the end of a detailed and innovative process which saw the Asta team deliver critical and ambitious speed to market in a matter of months.

Delivery

  • Following several months of working closely together, Asta and Greenlight Re secured “in principle” approval from the Lloyd’s Council for the creation of Greenlight Syndicate 3456 on 31 January 2022
  • Syndicate 3456 is fully managed by Asta and final approval was secured to commence underwriting business incepting April, 2022, following an Asta-led accelerated approvals process
  • Establishment of Syndicate 3456 further enhances Asta’s credentials as a key partner for innovative new entrants to the Lloyd’s market

Why Asta?

Greenlight considered several managing agents. However, a range of expertise and service made Asta stand out from its peers:

  • Asta’s tried and tested minimum standards compliant framework provided considerable timing and speed to market advantage during Lloyd’s due diligence
  • In-house expertise put Asta in a unique position to introduce Greenlight’s innovative SIAB and help decision makers understand its benefits for the market
  • Unrivalled depth of resource pool meant that Asta was able to quickly scale up project resourcing as required to deal with Lloyd’s requests and hit the target timeline
  • Longstanding relationships across Lloyd’s ensured Asta could deploy the necessary knowledge and advocacy for Greenlight Re throughout the approval process
  • Asta’s independent model provided Lloyd’s with the additional comfort that Asta’s designed control framework would appropriately manage the interests of the syndicate and Lloyd’s.
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“Greenlight Re has been a supporter of Lloyd’s for several years through the provision of Funds at Lloyd’s capacity. Syndicate 3456 will strengthen our Lloyd’s relationship and London market presence. We are delighted to work with Asta on this exciting initiative.”

Laure Kearns
Active Underwriter for Syndicate 3456

News, views and insights

Greenlight Re commences underwriting at Lloyd’s through Syndicate 3456

Read the press release

Contact us

To explore establishing a syndicate-in-a-box at Lloyd’s, please talk to our team:

Discover more about our range of solutions:

Why choose Asta?

Market leader in syndicate management
As the leading third-party managing agent at Lloyd’s, we have successfully launched and managed multiple SIABs, bringing innovative businesses into the market.

Tailored support
Our services are customized to meet the unique needs of SIABs, ensuring a cost-effective and efficient entry into Lloyd’s.

Regulatory expertise
We navigate the specific regulatory landscape of the SIAB framework, ensuring compliance and leveraging available efficiencies. Proven track record
Our experience in guiding businesses through the SIAB process has resulted in successful market entries and sustainable growth.