Beazley launches Lloyd’s ESG syndicate

Specialist insurer Beazley has received in-principle approval from Lloyd’s to establish Syndicate 4321, beginning January 1st 2022. The syndicate will focus exclusively on offering additional capacity to businesses that perform well against ESG metrics. It will be led by Will Roscoe, Head of the Market Facilities Division.

Syndicate 4321 has been established under the Lloyd’s ‘Syndicate In A Box’ (SIAB) framework. It will operate a consortium arrangement led by Syndicates 623/2623. Eligible clients that can meet the standards of the ESG rating scoring criteria will be able to access additional capacity from Syndicate 4321.

Syndicate 4321 will underwrite on a multi-line basis, to ensure diversification and balance. In the initial phase the syndicate will accept, D&O, healthcare, financial institutions, London market US cyber, property, marine hull, marine cargo and aviation business. All premiums received by Syndicate 4321 will be invested responsibly, in line with Beazley’s Responsible Investment Strategy.

Beazley CEO Adrian Cox said that “by creating the first specialist ESG syndicate at Lloyd’s, Beazley is taking an early step in delivering our commitment to embed ESG across our organisation, including our underwriting”.

Will Roscoe said that Syndicate 4321 was “an innovative and tangible way to support those businesses that invest in ESG by offering additional capacity”. He noted that “evidence demonstrates that businesses with high ESG ratings are likely to have a lower risk profile and we are looking forward to building long-term partnerships with clients that, like us, value doing the right thing.”