Axis Capital has gained approval from Lloyd’s and the UK financial regulators to establish its own managing agent, just weeks after the Bermudian (re)insurer announced a £468mn deal to acquire Lloyd’s carrier Novae.
In a statement dated 14 July, the carrier said that from 4 August, Axis Managing Agency Limited will assume management of Axis Syndicate 1686, replacing the company’s third-party managing agency agreement with Asta, which has been in place since the syndicate’s inception in 2014.
Axis Syndicate 1686 underwrites specialist classes of business including marine, energy, aviation, terrorism, property, casualty, professional indemnity and reinsurance and has a stamp capacity of £336mn for the 2017 year of account.
Mark Gregory, currently CEO of Axis Insurance's international division, will become CEO of the managing agency in addition to his existing position.
Axis said that launching its own Lloyd’s managing agency will enable it to have a more direct relationship with Lloyd's as well as allowing it to take full advantage of the market's worldwide licences and distribution network.
Furthermore, the carrier said the move would also support Axis Reinsurance’s plans to access specialty reinsurance business at Lloyd’s.
“This is a significant milestone for Axis. It brings us closer to Lloyd’s and its influential community of brokers, while also allowing us to deliver broader strategic value to our customers,” remarked Gregory.
The news represents Axis’ latest move to expand its presence in London and its Lloyd’s operations following its recent offer to acquire Novae.