In the battle between perception and reality, all too often perception wins.
While the process of modernising the UK's regulatory framework began a decade ago, outdated perceptions about London's capabilities continue to linger across the insurance linked securities (ILS) market.
These perceptions are now changing.
Launched in July 2022, London Bridge 2 PCC Limited — London Bridge 2 — is a multi-arrangement special purpose vehicle (SPV), often referred to as a 'transformer' vehicle. The platform has regulatory preapproval for each transaction, including to create a segregated, protected cell and issue either debt or equity preference shares to capital providers.
London Bridge 2 has demonstrated the potential for a thriving ILS issuance market in London. Through 30 September 2024, this SPV has brought $760 million of capital into Lloyd's of London businesses, and looking ahead, there's a good potential pipeline that could add another $1 billion in the not-too-distant future.
That's no surprise given that London Bridge 2 is the dedicated risk transformer platform that provides investors with access to Lloyds' reinvigorated insurance and reinsurance market.
Read the whitepaper to learn more about how the emergence of London Bridge 2 is enabling new value to ILS, as we pose the question of what a future London ILS market could look like and London Bridge 2's contribution to it.
