Global player Allianz is partnering with investor Oaktree Capital Management to launch a reinsurance syndicate in the Lloyd’s market that will take a share of the re/insurer’s outwards reinsurance program, with funding channelled via the insurance-linked securities structure London Bridge 2 PCC.Allianz becomes the latest to partner with an investment manager to launch a Lloyd’s syndicate dedicated to providing reinsurance to support its underwriting business.Setting up reinsurance syndicates backed by third-party institutional investors is a growing trend in the market and these are playing a similar role to a sidecar for the re/insurers involved.In this case, Oaktree will establish Syndicate 1890 as a new reinsurance syndicate at Lloyd’s, with the vehicle set to start underwriting from January 1st 2026 and participate as a multi-year partner on Allianz’s outwards reinsurance program.

By bringing Oaktree’s capital to its reinsurance program via Lloyd’s Allianz benefits from AA- rated capacity as well, hence channelling the funding via the Lloyd’s ILS structure London Bridge 2 PCC into a syndicate, to then reinsurer back to Allianz’s tower is an efficient way of raising the bar for use of third-party capital, as we’ve seen in other examples.So Allianz benefits from high-rated reinsurance capacity funded by a third-party investor, while Oaktree gets the reinsurance-linked returns and also the asset management float from the structure.Allianz said, “Syndicate 1890 positions Allianz to capitalize on the growing appetite of capital markets for insurance risks and access to third party capital.” The company noted the “operational efficiencies and flexibility for future expansion” of the Lloyd’s structure, which it expects to support “Allianz’s continued growth and innovation in risk transfer.” Oaktree brings expertise and a track record of investing into insurance and reinsurance opportunities, offering experience and access to capital at the same time.

Syndicate 1890 is set to receive a share of Allianz’s outwards reinsurance program, so presumably a quota share arrangement.This business will represent a highly diversified and broad portfolio of risk.Oaktree is both funding the syndicate via the London Bridge 2 PCC ILS structure and also set to act as its investment manager.

Thorsten Fromhold, Chief Group Reinsurance Officer, Allianz SE Reinsurance, commented, “Allianz’s underwriting portfolio is marked by its quality and diversity, making it a strong candidate for strategic reinsurance partnerships.The launch of this Lloyd’s syndicate highlights the strength of the portfolio we are ceding and our consistent approach to reinsurance, which is an important contributor to Allianz’s resilience.Our multi-year agreement with Oaktree will complement our existing strong relationships with traditional reinsurers.

Leveraging the Lloyd’s platform allows us to pursue tailored and innovative transactions that enhance these partnerships.” Chris Boehringer, Managing Director at Oaktree, added, “We are excited to launch this innovative reinsurance syndicate together with Allianz, and within the Lloyd’s ecosystem.We believe Syndicate 1890 is an important template for the convergence of alternative asset management and insurance, and will bring significant advantages to Allianz, Lloyd’s, and Oaktree.We look forward to building this multi-year partnership with Allianz, which showcases both the attractiveness of the Allianz portfolio and Oaktree’s investment expertise and innovative approach to investing in insurance.” Dawn Miller, Lloyd’s Chief Commercial Officer and CEO of Lloyd’s Americas, added, “Lloyd’s is delighted to welcome Syndicate 1890 to the market as it combines Allianz’s strongly performing reinsurance portfolio with Oaktree’s capital support and investment management capabilities.

The choice of Lloyd’s for this structure reflects the efficiency and flexibility of our platform in connecting insurance risk with capital and enabling innovative solutions through London Bridge 2.” We’ve also seen Blackstone , as well as with The Fidelis Partnership on a Lloyd’s syndicate launch.Both of those examples saw the London Bridge 2 PCC insurance-linked securities (ILS) structure utilised to fund the new reinsurance syndicates.In addition, Lloyd’s specialist .

The reinsurance sidecar syndicate at Lloyd’s is an efficient way to leverage third-party investor capital and give it access to a reinsurance program, while benefiting from the infrastructure of Lloyd’s and its rating, while in cases involving asset managers there is also an AUM angle as well, given the value of managing the underwriting premium float.Other recent syndicate launches are also utilising London Bridge 2 PCC to give investors an efficient way to bring capital into the Lloyd’s market..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.