Lloyd’s provides curious alternative for multinationals, but rush of applications not expected

• Rising fronting fees and collateral costs one driver of Lloyd’s interest
• Extensive cost analysis required as Lloyd’s brings other associated costs
• A Captive Syndicate could form part of an effective multi-captive strategy
• Formation could take as little as eight weeks, but process largely untested

Despite the first Lloyd’s Captive Syndicate being formed this year, there is unlikely to be a sudden surge of new captive syndicates as the proposition is expected to appeal to only the largest multinational organisations in the short term.

Companies with global operations would benefit most from leveraging the associated costs of a Lloyd’s captive against the Corporation’s extensive fronting network and AA- rated paper.