Source: Lloyd’s

Centuries-old exchange Lloyd’s of London announced it plans to stop accepting admitted market accounts in the U.S and focus on the U.S. reinsurance and excess and surplus (E&S) insurance market.

Lloyd’s U.S. business is a mixture of admitted SME lines and personal lines. As part of this strategy to focus on its core markets, Lloyd’s will relinquish its admitted licenses in the U.S. Virgin Islands, Kentucky and Illinois, which together represent US$215 million or 1% of Lloyd’s annual U.S. premium income.

“It was a recognition that E&S business is a better fit for our underwriters given the market’s innovative nature and expertise in emerging risks,” explained Lloyd’s, “Lloyd’s believes that the product flexibility of the E&S space is key to realising Lloyd’s strategic vision.”

Meanwhile, the insurance marketplace went on to state: “Lloyd’s understands that the market and our key stakeholders will need time to make changes to their commercial plans. We are therefore providing a window of 12 months during which new business will continue to be allowed. After July 01, 2021, no new business or programmes will be accepted on the US licensed platforms.”