LLOYD S IN THE US MARKET

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1 LLOYD S IN THE US MARKET Contents 1 About Lloyd s 2 How Lloyd s works 3 Financial strength and ratings 3 Global reach 4 Multiple classes, maximum innovation 5 Lloyd s US a major player 6 Contact us

2 ABOUT LLOYD S 1 About Lloyd s Lloyd s is the world s specialist (re)insurance market, conducting business in over 200 countries and territories worldwide. We re often the first to insure new, unusual or complex risks, providing risk management solutions for local, cross border or global risks of any size. We bring together an outstanding concentration of specialist expertise and talent, backed by excellent financial ratings which cover the whole market. Since its humble beginnings in Edward Lloyd s coffee shop in London 327 years ago, Lloyd s has been at the forefront of developing new insurance products to meet the changing needs of policyholders. Lloyd s international strategy Lloyd s Vision 2025 is the long term strategy to reinforce Lloyd s position as the global center for specialist insurance and reinsurance in a changing world. Read more about our international strategy at Learn more about Lloyd s at

3 HOW LLOYD S WORKS 2 How Lloyd s works Our unique structure creates a market based on trusted relationships and expertise. Lloyd s is a broker market, with brokers involved in all aspects of our distribution channels. The majority of business written at Lloyd s is placed through brokers, who facilitate the risk transfer process between policyholders and underwriters. Much of the business written at Lloyd s is brought to specialist underwriters who price and underwrite these risks. Many of the risks placed at Lloyd s are transacted on a face to face basis in the underwriting room. Brokers may also access the Lloyd s market locally through coverholders and service companies. A Lloyd s syndicate is formed by one or more members joining together to accept risk. Many syndicates write a range of classes of business and others specialize in one or two. The capital which supports syndicates underwriting is provided by members of Lloyd s, among them individuals, limited partnerships and global insurance groups. A managing agent is a company set up to manage one or more syndicates on behalf of the members providing capital. The Corporation of Lloyd s oversees overall risk and performance management of the market, provides processing services, manages the global network of licenses and promotes the Lloyd s brand. Find out more about Lloyd s market structure Strength in numbers The sheer scale of the market means it can offer a huge diversity of products; the scope of specialist broking and underwriting expertise found together under the Lloyd s umbrella makes it unique. 94 SYNDICATES of specialist underwriting experience and talent. 3,872 coverholders offering a local route to Lloyd s. 219 lloyd s Brokers bring business from over 200 Countries and territories The Lloyd s underwriting room 94 syndicates are run by the 59 managing agents shown here as at 31 December, 2014

4 FINANCIAL STRENGTH AND RATINGS GLOBAL REACH 3 Financial strength and ratings Global reach Lloyd s unique capital structure, often referred to as the Chain of Security, provides excellent financial security to policyholders and capital efficiency for members. The Chain of Security provides the financial strength that ultimately backs insurance policies written at Lloyd s and the common security that underpins the market s ratings and license network. International capital supporting Lloyd s 30% UK listed and other corporate 22% US insurance industry 24% Worldwide insurance industry All figures and exchange rates as at December 31, 2014 ( 1=$1.56) Lloyd s Chain of Security Several assets Mutual assets 13% Bermudian insurance industry 9% Individual members (limited liability) 2% Individual members (unlimited liability) First link Second link Third link Learn more at Financial performance US$4.9BN Profit before tax 88.1% Combined ratio For further details visit How leading rating agencies assess our financial security A+ Standard & poor s A+ (Strong) Syndicate level assets US$70,417m Members funds at Lloyd s US$24,498m Central Fund US$2,480m Corporation US$161m Subordinated debt/securities US$1,381m AA- Fitch ratings AA- (Very strong) US$41.7bn Gross written premium income US$4bn Central assets A A.M. Best A (Excellent) Callable layer US$1,215m Lloyd s global business breakdown 44% US and Canada 18% UK 15% Rest of Europe 11% Central Asia and Asia Pacific 8% Other Americas The Lloyd s market provides insurance to over 200 countries and territories worldwide. Our licenses in over 75 jurisdictions, supported by a network of local offices and coverholders across the world, ensure access to insurance markets large and small. Lloyd s international network can underwrite local, cross border or global risks of any size and complexity. To find out more about what Lloyd s can underwrite and where visit 4% Rest of the world

5 MULTIPLE CLASSES, MAXIMUM INNOVATION 4 Multiple classes, maximum innovation The scope of the Lloyd s market and our underwriters talent and expertise produces innovative solutions across multiple classes of business in the US and worldwide. We provide cover for all classes of business, including the following: Marine Casualty Motor Reinsurance Lloyd s is an industry leader in marine business. Main classes include hull, cargo, marine liability and specie (the insurance of valuable property such as precious metals, art or jewelry). The casualty market at Lloyd s comprises a broad range of classes. The most significant are general liability, professional liability, management liability and medical malpractice. Although shorter-tail in nature than most casualty lines, accident and health business is also included within this sector. The US market is the largest single market for Lloyd s casualty business followed by the UK/Europe, Canada and Australia. Lloyd s motor market primarily covers UK private car and commercial/ fleet business. Lloyd s commercial/ fleet business is very diverse, ranging from light commercial vehicles and taxis to buses and heavy haulage. In the US, Lloyd s writes a variety of transportation risk excluding private passenger vehicles. The reinsurance market at Lloyd s covers a wide range of classes, both short and long-tail. Business is written as both facultative and treaty, mainly on an excess of loss basis. The predominant class is property, which includes catastrophe risks worldwide with a significant exposure to the US market. Property Energy Aviation Emerging risks The property sector consists of a broad range of risks written worldwide. In Lloyd s largest market, the US, it is predominantly made up of surplus lines business with a weighting to the industrial and commercial sectors, binder business of mainly nonstandard commercial and residential risks, and specialist classes including terrorism, power (electricity) generation, engineering and nuclear risks. The Lloyd s energy sector includes a variety of onshore and offshore property and liability classes, ranging from construction to exploration and production, refinery and distribution. A significant part of the portfolio is offshore energy business and a large proportion of this is located in the Gulf of Mexico. Lloyd s is an industry leader in the global aviation market and writes across all main business segments including airline, aerospace, general aviation and space. Airline (hull and liability) is the largest segment but Lloyd s aviation is also actively involved in the underwriting of general aviation (eg privately owned light aircraft, helicopters and large private corporate jets), airport liability, aviation product manufacturers liability, aviation war/ terrorism and satellite launch/in-orbit risks. From climate change to terrorism and energy security to liability, businesses need to understand emerging risks to successfully lead their organizations into the future. Lloyd s emerging risk reports bring together the views of some of the world s leading academic, business and insurance experts. We analyze the latest information on emerging risks to ensure we re able to provide new risk management solutions in a fast changing world. Read more about emerging risks, visit

6 LLOYD S US A MAJOR PLAYER 5 Lloyd s US a major player Breakdown of US classes of business 2014 Lloyd s has been a major force in the US insurance market for over a century from the devastating San Francisco earthquake of 1906 to recent catastrophes such as Superstorm Sandy. Underwriters at Lloyd s are licensed insurers in Illinois, Kentucky and the US Virgin Islands and are approved surplus lines insurers in all US jurisdictions. Lloyd s is also an accredited reinsurer in all 50 states. Throughout its long relationship with the US, Lloyd s has provided American businesses with creative solutions for their risk and private entities management needs. Over the course of the 20th century, new risks posed by a growing US economy provided Lloyd s with opportunities to expand its portfolio beyond natural catastrophes in coastal states to a wide range of products including management and professional liability, construction, real estate, transportation, renewable energy, cyber risk, terrorism, sports and entertainment and celebrity body parts. 33% Property (D&F) 17% Property treaty 20% Casualty 10% Marine 7% Energy 5% Accident and health Largest lines of business in Lloyd s top ten states 2% Aviation 4% Casualty treaty 2% Overseas motor 38% of Lloyd s global premium comes from the US. In 2014 this accounted for US$14.6bn. Breakdown of US business by category 2014 Surplus lines 56% Licensed 1% 36% 7% Lloyd s leads the way in the excess and surplus lines and reinsurance markets IN THE US. Reinsurance Exempt Property Energy Property and liability Liability Lloyd s share of the excess and surplus market in CA, FL, GA, LA, MA, NC, SC and TX ranges from 20 30%. Catastrophe capacity provided by Lloyd s fills a critical need in these states. Lloyd s Market Intelligence products contain further analysis and information on Lloyd s business in the US

7 CONTACT US 6 Contact us Contact our local Lloyd s office in the US for information and assistance about how to access the Lloyd s market. Atlanta Rodney Smith rodney.smith@lloyds.com Boston Glenn Dorr glenn.dorr@lloyds.com Chicago/Frankfort, KY Pat Talley / pat.talley@lloyds.com Los Angeles Richard Magrath richard.magrath@lloyds.com New York Hank Watkins hank.watkins@lloyds.com USVI Hank Feuerzeig hank.feuerzeig@lloyds.com For more information about Lloyd s in the US, visit Global offices Africa Asia-Pacific Europe MIddle East North America South America lloyds.com/facebook This brochure provides general information only and does not constitute solicitation of business. All US business underwritten at Lloyd s must be placed in accordance with US regulatory requirements. Coverage must comply with local law. Lloyd s America, Inc. is not licensed as an insurer in any state. Underwriters at Lloyd s are licensed only in Kentucky, Illinois and the US Virgin Islands, and are eligible surplus lines insurers in all US jurisdictions. Lloyd s underwriters are also accredited reinsurers in all states. Lloyd s is regulated by the Financial Conduct Authority and Prudential Regulation Authority. Lloyd s 2015 All rights reserved. Lloyd s is a registered trademark of the Society of Lloyd s. Designed by frankbrightabel.com