AEGIS London, a top quartile Lloyd’s syndicate, has announced significant enhancements to its political and financial risk (PFR) offering.
The syndicate has increased its sovereign non-payment (CF) and political risk (PR) line sizes from $20 million to $30 million, and doubled its credit non-payment (CR) capacity from $10 million to $20 million – reflecting substantial growth and demand within its portfolio.
This move is in response to increasing market demand, driven by a complex interplay of macroeconomic forces, geopolitical uncertainties, and growing expertise and investment across AEGIS London’s PFR team, the company said.
“Amid heightened geopolitical and macroeconomic instability, businesses worldwide are adopting a more cautious stance and actively pursuing enhanced protection against non-payment,” according to Alex Clarke, PFR class underwriter at AEGIS London, in a statement.
“In response, we’ve deepened our knowledge across new sectors and asset classes, and invested in data analytics and technology to support brokers and clients as events evolve. Our market expertise and enhanced technical capabilities means we are well positioned to write complex risks across a range of sectors and jurisdictions,” he added.
Sector Focus
The PFR team writes risks across a wide range of sectors and clients, covering a range of activities from corporate lending to specialized asset financing – such as aircraft and shipping finance and large-scale project finance. The team provides tailored support to individual clients and facilitates syndicated transactions involving multiple insureds.
“What differentiates AEGIS London’s PFR offering in the Lloyd’s market and globally is the diversity of our risk appetite. We can cater for a broad range of clients on a variety of risks, all backed by top-quartile Lloyd’s Syndicate paper,” Clarke continued.
“Brokers value the stability and consistency we offer clients, and are responding positively to our enhanced offering.”
Outlook for PFR market
As global instability and uncertainty continues, AEGIS London actively monitors regions, markets and sectors with elevated exposure to potential tariffs and macroeconomic downturn risks. The team actively stress tests its portfolio by reviewing the probability of default and expected losses if specific exposures deteriorate through the macroeconomic cycle.
Looking ahead, Clarke anticipates the PFR market will continue growing and AEGIS London will assist clients with an even greater range of assets and investments on their balance sheets.
“While many insurers may gravitate towards safer risks and sectors higher up the credit curve, there will be opportunities for those who can navigate and identify opportunities below this threshold. As volatility and uncertainty remain, so too will demand and growth for PFR,” he added.
AEGIS London operates Lloyd’s Syndicate 1225 and comprises the UK-based subsidiaries of AEGIS (Associated Electric & Gas Insurance Services Limited), a mutual insurance company that serves the needs of the North American energy industry. From its origins in 1999, AEGIS London has become a top quartile diversified Lloyd’s Syndicate, leading and participating in a wide range of business classes with a talented team of over 230 people.
Source: AEGIS London
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London
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