Higher return expectations from paper providers could burst the MGA “bubble”.
This may be the year investors call pricing models for alternative capital into question.
Hamilton and Cinven are the other parties in Evercore-run process.
The dash for the Lloyd’s business feels wide open as we enter the home straight.
The declines come after many years in which new entrants outweighed closures.
It is tempting to assume that all the syndicate shrinkage at Lloyd’s is a direct consequence of Jon Hancock’s clampdown on weak underwriting.
Carriers are seeking rate rises, but competition owing to plentiful capacity and a shrinking client base is causing them pain.
Carriers could pick up high-rated corporate debt as liquidity flows back out of bonds and into equities.
The stock has declined by almost two-thirds in the past year and more than halved since its 2017 IPO.
Commercial airline claims exceeded premiums for the sixth year running, according to JLT.
The deal will flexibly expand in line with cessions from an MGA.
Brokers forecast an average of $9.4bn in cat bond volumes for the year.