China Re has launched a first-of-its-kind renewable energy consortium within the Lloyd’s marketplace to provide reinsurance for the construction and operation of offshore windfarms around China.
The consortium covers construction all risks, erection all risks and third-party liability and has a mandate to provide up to US$225mn per risk.
Syndicate 2088, China Re’s standalone reinsurance entity at Lloyd’s, will manage and co-lead the consortium along with Canopius Syndicate 4444 and Travelers Syndicate 5000.
Canopius, which owns Canopius Syndicate 4444, is domiciled in Zurich and operates in the UK, Ireland, Netherlands, Switzerland, Bermuda, US and Singapore.
Travelers Syndicate 5000 is owned by The Travelers Companies, which is based in London and primarily offers maritime and aviation insurance for businesses.
The new group will also be supported by Axis Syndicate 1686, GCube Underwriting and Chaucer Syndicate 1084, which was acquired by China Re as part of its US$865mn deal for Chaucer Group in 2018.
A spokesperson for China Re tells GTR that although the consortium is up and running it has no confirmed projects on its books so far.
China Re is a state-owned entity that operates in property and casualty reinsurance, life and health reinsurance, and primary property and casualty insurance. It boasts the largest reinsurance premium income in Asia which is valued at more than US$16bn.
The new consortium forms part of a wider strategy by China to become a global leader in the renewable energy market, which is expected to become one of the fastest growing sectors of the future. China’s President Xi Jinping has pledged US$360bn to invest in renewable power development by 2020.
Janet Helson, CEO of China Re Underwriting Agency 2088, says: “We are tremendously proud to be launching this consortium. It’s the first of its kind, enabling international involvement in the Chinese renewable energy market and a great example of the collaboration that exists between the London and Chinese markets.”
Oliver Litterick, renewable energy underwriter at China Re Syndicate 2088, adds: “China is investing heavily in renewable energy so there is a compelling opportunity for Lloyd’s to be involved. This consortium will be able to access China Re’s domestic client base of offshore wind specialists to bring this new and diverse premium to the London market.”