The Construction Consortium at Lloyd s

The Construction Consortium at Lloyd s

The Construction Consortium at Lloyd s The Construction Consortium at Lloyd s continues to offer credible lead capacity for a wide range of construction risks where historically individual Lloyd s syndicates have been limited by their size. With a combined $320m of PML capacity, superior technical expertise, a proactive approach to risk management and a supportive claims service, the Consortium provides a viable alternative to the established construction markets. In May 2013, four of the market s most experienced insurers of construction risks came together to form the Construction Consortium at Lloyd s. The consortium has since been joined by two further insurers and today offers a combined PML capacity of up to $320m enabling it to rival the most established lead markets. Since inception more than 140 risks with circa $50m premium have been written for clients around the world, demonstrating that the specialist expertise of the individual consortium partners can be swiftly backed by substantial capacity.

KEY BENEFITS Up to $320m probable maximum loss capacity (approx. equivalent to a $1b participation on a sum insured basis) Lloyd s financial security (A.M. Best: A Excellent, S&P: A+ Strong, Fitch: AA- Very strong) A lead market for all types of construction and engineering projects worldwide Flexible participation: any syndicate can lead we can offer up to 100% capacity depending on the TIV/PML Bespoke all risks wording for clients and their projects Rapid service to meet brokers deadlines. HOW IT WORKS The six members of the consortium have different areas of expertise and varying underwriting appetites for different classes of risk. The consortium makes good use of this diversity, aligning capacity behind the syndicate that is most experienced and expert in the risk class for which cover is sought. Once the broker and client select the lead, coverage terms and capacity are initially agreed between the lead and co-lead underwriters within the consortium. These are then submitted for rapid review by the other consortium members, and terms are then presented to the broker (see placement process flowchart opposite).

PLACEMENT PROCESS 1 2 3 4 5 Broker/client decide to approach the consortium and choose which syndicate they would like to act as access point to the consortium. Lead syndicate determines if the risk is suitable for the consortium and confirms appetite and likely capacity with other members If the risk is not suitable for the consortium, the broker/client can approach any of the six syndicates individually on an open market basis Lead syndicate chooses co-lead. The two syndicates work together to formulate terms and obtain final agreement and line sizes from remaining four syndicates Consortium terms presented to the broker/client by the lead syndicate If terms are accepted the lead syndicate enters their line and the overall consortium line. The broker/client will then need to collect the pre-agreed lines from the remaining members A major advantage of the Lloyd s market is that brokers/clients can assemble large scale capacity very rapidly. The construction consortium is no exception, with quotes for cover delivered swiftly to meet deadlines. THE COVERAGE On shore construction all risks (CAR) and engineering all risks (EAR) with associated third party liability and delay in start-up. LLOYD S SECURITY RATINGS Standard & Poor s A+ (Strong) Fitch AA- (Very Strong) A.M. Best A (Excellent) CLAIMS SERVICE Swift and supportive claims service has underpinned Lloyd s reputation in insurance for more than three centuries. The construction consortium operates in line with the standard Lloyd s claims agreements that support consistent, high quality claims service within the syndicated market. Under the Lloyd s Claims Scheme (Combined), the consortium is classed as one entity and the lead syndicate in the consortium on any project will rank as the first Lloyd s claims agreement party. If there are other non-consortium syndicates on the placement they will rank as the second claims agreement party.

ABOUT THE CONSORTIUM MEMBERS Beazley plc Beazley plc is the parent company of specialist insurance businesses with operations in Europe, the US, Asia, Middle East, Latin America and Australia. Beazley manages six Lloyd s syndicates and, in 2015, underwrote gross premiums worldwide of $2,080.9m. Beazley is a market leader in many of its chosen lines, which include professional indemnity, property (including construction & engineering), marine, reinsurance, accident and life, and political risks and contingency business. www.beazley.com CNA Hardy CNA Hardy is a leading specialist commercial insurance provider for clients within the Lloyd s and company markets. We write business at Lloyd s in London and Asia via syndicate 382. We write over 30 classes of business across 4 broad categories: Property, Casualty, Marine and Specialty. CNA Hardy is part of CNA Financial Corp, one of the largest U.S. commercial property and casualty insurance companies. Established in 1897, CNA has approximately 7,000 employees, serving businesses and professionals in the U.S., Canada, Europe and Asia. Our global reach and network of more than 75 offices around the world means we can offer coverage to businesses of all sizes for domestic, international and global exposures. www.cnahardy.com Novae Novae Group is a diversified insurance and reinsurance business operating through syndicates 2007 and 6129 at Lloyd s and is listed on the London Stock Exchange. The Group has operations in London and Bermuda and underwrites over 30 lines of business through its three divisional units: property, casualty and marine, aviation and political risk. The combination of expert underwriting, consistent performance and dynamic capital management are the cornerstones of Novae s strategy and are integral to achieving its market leading performance across the Group. www.novae.com Sompo Canopius Sompo Canopius writes global specialty (re)insurance as part of Sompo Holdings, which has total assets of c$85b and is listed on the Tokyo Stock Exchange. Sompo Canopius underwrites a diverse portfolio of specialty lines business, including marine, energy, engineering, property, political risks, crisis management, casualty and accident & health. It operates at Lloyd s and around the world, with offices in the UK, Ireland, Netherlands, Switzerland, Bermuda, the US and Singapore. www.sompocanopius.com Talbot Underwriting Ltd Talbot Underwriting Ltd operates in the Lloyd s insurance market through syndicate 1183. Syndicate 1183 focuses on underwriting a number of specialty risks including marine, aviation, transport, energy, terrorism, political risk, accident and health, construction, contingency, financial institutions, property and treaty reinsurance. Talbot Underwriting is a wholly owned subsidiary of Validus Holdings, Ltd. Through worldwide operating subsidiaries, Validus Group provides a broad range of innovative insurance and reinsurance products, with particular emphasis on short-tail lines of business. Validus Holdings Ltd is listed on the New York Stock Exchange. www.validusholdings.com Travelers Travelers in Europe, offers diverse business lines through Travelers Insurance Company Limited; Travelers Syndicate Management Limited (Syndicate 5000); and Travelers Underwriting Agency Limited. Travelers syndicate 5000 writes construction, aviation, global property, marine, power, utilities & renewables, accident & special risks and financial institutions business through the internationally renowned platform of the Lloyd s insurance market. The Travelers Companies, Inc. ( TRV )is a leading provider of property liability insurance for motor, home and business. The Group has more than 30,000 employees and operations in the United States, Canada, UK and Ireland, and through a joint venture in Brazil, under the brand J. Malucelli Participações em Seguros e Resseguros S.A. The group has total assets of approximately $103b, shareholders equity of $25b and total revenue of approximately of $27b, in 2015. www.travelers.co.uk

THE CONSTRUCTION CONSORTIUM AT LLOYD S Beazley Colin Rose 020 7674 7789 colin.rose@beazley.com CNA Hardy Caroline Hairsine 020 7105 3365 Caroline.Hairsine@cnahardy.com Novae Steve Cross 020 7050 9537 SCross@novae.com Sompo Canopius Simon Challinor 020 7337 3641 simon.challinor@sompocanopius.com Talbot David Turner 020 7550 3711 david.turner@talbotuw.com Travelers Paul Latimer 020 3207 6464 platimer@travelers.com For more information visit: www.constructionatlloyds.com The descriptions contained in this communication are for preliminary informational purposes only. Coverages are underwritten by syndicates at Lloyd s that are participants in the construction consortium and will vary depending on individual country law requirements and may be unavailable in some countries. The exact coverage afforded by the product(s) described in this communication are subject to and governed by the terms and conditions of each policy issued. CBBC179_UK_11/16