AIG launches sidecar-like reinsurance syndicate at Lloyd’s, funded via London Bridge 2

AIG has announced the launch of Syndicate 2478 at Lloyd’s, which is set to be a multi-year participant on its outwards reinsurance program and is supported by third-party capital from funds under Blackstone management, channelled through the London Bridge 2 PCC structure.

Syndicate 2478 will commence underwriting from January 1st 2025 and given how it will provide reinsurance capacity to support AIG’s own protection needs, it looks set to operate as an innovative sidecar-like arrangement for the insurance giant.

Managed by Talbot Underwriting Limited at Lloyd’s, the new syndicate has approved stamp capacity of $715 million for the 2025 Year of Account, AIG explained today.

As well as providing third-party capital from its funds, asset management giant Blackstone will also act as the investment manager for the syndicates assets.

The third-party capital funding from Blackstone structures will flow to the new AIG syndicate via Lloyd’s own insurance-linked securities (ILS) platform, London Bridge 2 PCC.

Premium underwritten by the new Syndicate 2478 will access risk from across AIG’s diversified global property & casualty businesses, the insurer said.

“The launch of Syndicate 2478 is a significant endorsement of the quality of our property & casualty underwriting portfolio and demonstrates the strength of our strategic relationships with Blackstone and Lloyd’s – distinct advantages that set AIG apart,” explained Charlie Fry, Executive Vice President, Reinsurance & Risk Capital Optimization, AIG.

“AIG is one of the largest and most sophisticated buyers of reinsurance globally and this multi-year agreement with Blackstone highlights the attractiveness of our underwriting performance and expertise. It is also a tremendous opportunity to access the Lloyd’s platform for bespoke and innovative transactions,” Fry added.

The new syndicate provides a way for AIG to channel differentiated and efficient third-party institutional capital to support the reinsurance needs of its global business. While also leveraging an innovative mechanism to channel funds into the Lloyd’s market, in London Bridge 2 PCC, as well as providing benefits from all the infrastructure and market access Lloyd’s provides.