London Bridge 2 PCC, the Lloyd’s of London insurance and reinsurance market’s insurance-linked securities structure, has been meaningfully used to channel new capital into the marketplace through the fourth-quarter of the year, according to Nick Donovan, Head of Market Development.Reflecting on new syndicates launched and new entrants to the market, Donovan posted on LinkedIn that capital is coming from a diverse range of sources to back new underwriting businesses at Lloyd’s, while increasingly London Bridge 2 PCC is the vehicle of choice for making it easy and efficient to fund obligations into the Lloyd’s re/insurance market.As we’ve explained before, London Bridge 2 PCC is seeing increasing traction as a mechanism to deploy capital into the Lloyd’s marketplace, being well-suited to third-party investors looking to fund Lloyd’s structures and as a mechanism they can access reinsurance-linked returns through.As an insurance-linked securities (ILS) structure, London Bridge 2 PCC is also an efficient way for re/insurers to deploy capital into the market, a modern way to fund obligations there, accessing diversifying business from Lloyd’s and bypassing more traditional routes that have been used in the past.

These trends have seemingly accelerated through the final months of 2025, as Donovan explained.Commenting on the new Lloyd’s syndicates and start-ups, he said, “Solvency capital supporting these ventures comes from a range of sources, including high net worth individuals, carrier balance sheets, and institutional asset managers.” Going on to highlight the growing use of Lloyd’s own ILS structure to support this activity in the market, Donovan stated that, “London Bridge 2, a risk transformation vehicle, opened 14 cells in Q4 2025, ten of which support the new syndicate applications, bringing $660m of new capital to the Lloyd’s market.” As a result, London Bridge 2’s track-record is increasing and Donovan highlighted that, “Twelve managing agents have now used London Bridge 2, with total capital deployed across both Funds at Lloyd’s and collateralised syndicate-level reinsurance now >$2.8bn.” As we’ve explained in previous articles, the London Bridge 2 PCC ILS structure has seen its use-cases expand over time as well.It’s now been utilised by, institutional investors to access returns from Lloyd’s both by backing syndicates and collateralised reinsurance, by asset managers supporting commitments to new syndicate launches, by Lloyd’s players looking for efficient reinsurance including through sponsorship of 144A catastrophe bonds, and by traditional re/insurers looking to access diversifying business returns from the market.

London Bridge 2 PCC has cemented its role as a key route for channelling capital into the Lloyd’s market.As a way to access returns from Lloyd’s and the insurance and reinsurance business there, we believe London Bridge 2 PCC will continue to play an ever-more important role as a conduit to efficient capital for underwriters and companies operating and setting up at Lloyd’s.The risk transformation vehicle is now an attractive selling point for Lloyd’s as it explains why new market entrants should consider operating and setting up there, as well as how it can be achieved efficiently, delivering on many of the initial ambitions the market had when the first London Bridge structure was established.

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