LLOYD’S IN CANADA
Contents
1
2
3
3
4
5
6
About Lloyd’s
How Lloyd’s works
Financial strength and ratings
Global reach
Multiple classes, maximum innovation
Lloyd’s Canada – a major player
Contact us
ABOUT LLOYD’S | 1
About Lloyd’s
Lloyd’s is the world’s specialist (re)insurance market, conducting business in
over 200 countries and territories worldwide. We’re often the first to insure
new, unusual or complex risks, providing risk management solutions for local,
cross border or global risks of any size.
We bring together an outstanding concentration of specialist expertise and
talent, backed by excellent financial ratings which cover the whole market.
Since its humble beginnings in Edward Lloyd’s coffee shop in London 327 years
ago, Lloyd’s has been at the forefront of developing new insurance products to
meet the changing needs of policyholders.
Learn more about Lloyd’s at
www.lloyds.com/aboutus
Lloyd’s international strategy
Lloyd’s Vision 2025 is the long term
strategy to reinforce Lloyd’s position as
the global center for specialist insurance
and reinsurance in a changing world. Read
more about our international strategy at
www.lloyds.com/strategy
HOW LLOYD’S WORKS | 2
How Lloyd’s works
Our unique structure creates a market based on trusted
relationships and expertise.
Lloyd’s is a broker market, with brokers
involved in all aspects of our distribution
channels. The majority of business written at
Lloyd’s is placed through brokers, who
facilitate the risk transfer process between
policyholders and underwriters.
A coverholder is a business authorized
by a managing agent to accept insurance
risks on behalf of a syndicate. The scope of
the coverholder’s remit is set out in a Binding
Authority Agreement between the managing
agent and the coverholder.
A Lloyd’s syndicate is formed by one
or more members joining together
to accept risk. Many syndicates write
a range of classes of business and
others specialize in one or two.
A service company operates like
a coverholder but is a wholly owned
subsidiary of a managing agent or its group.
Unlike a coverholder, a service company is
able to sub-delegate underwriting authority
to other coverholders.
The capital which supports syndicates’
underwriting is provided by members
of Lloyd’s, among them individuals, limited
partnerships and global insurance groups.
A managing agent is a company
set up to manage one or more syndicates on
behalf of the members providing capital.
The Corporation of Lloyd’s oversees overall
risk and performance management of the
market, provides processing services,
manages the global network of licenses and
promotes the Lloyd’s brand.
Find out more about Lloyd’s market structure
www.lloyds.com/thelloydsmarket
Strength in numbers
The sheer scale of the market means it can offer a huge diversity of products; the scope of
specialist broking and underwriting expertise found together under the Lloyd’s umbrella
makes it unique.
94
SYNDICATES
of specialist
underwriting
experience
and talent.
3,872
coverholders
offering a local
route to Lloyd’s.
219
Brokers
bring business
from over...
200
Countries
and territories
The Lloyd’s underwriting room
94 syndicates are run by the 59 managing agents shown here as at 31 December 2014.
FINANCIAL STRENGTH AND RATINGS
GLOBAL REACH | 3
Financial strength and ratings
Global reach
Lloyd’s unique capital structure, often
referred to as the Chain of Security,
provides excellent financial security
to policyholders and capital efficiency for
members. The Chain of Security provides
the financial strength that ultimately backs
insurance policies written at Lloyd’s and
the common security that underpins the
market’s ratings and license network.
The Lloyd’s market provides insurance to over 200 countries and territories worldwide.
Our licenses in over 75 jurisdictions, supported by a network of local offices and
coverholders across the world, ensure access to insurance markets large and small.
Lloyd’s international network can underwrite your local, cross border or global risks of
any size and complexity.
2014 Financial performance
C$5.7BN
Profit before tax
88.1%
Combined ratio
C$46bn
Gross written
premium income
C$4.7bn
Central assets
To find out more about what Lloyd’s can underwrite and where visit
www.lloyds.com/licenses
For further details visit
www.lloyds.com/financialperformance
44%
US and Canada
Lloyd’s Chain of Security
Several
assets
Mutual
assets
First link
Syndicate level assets
C$81,702m
Second link
Members’ funds at Lloyd’s
C$28,424m
Third link
Central Fund C$2,878m
Corporation C$186m
18%
Subordinated debt/Securities
C$1,602m
International capital supporting Lloyd’s
30%
UK listed
and other
corporate
22%
24%
Worldwide
insurance
industry
13%
US insurance Bermudian
industry
insurance
industry
9%
Individual
members
(limited liability)
2%
Individual
members
(unlimited
liability)
Learn more at www.lloyds.com/security
15%
How leading rating agencies
assess our financial security
A+
STANDARD
& POOR’S
A+ (Strong)
UK
Callable layer
C$1,410m
AA- A
FITCH
RATINGS
AA- (Very
Strong)
A.M. BEST
A (Excellent)
All figures and exchange rates as at December 31,
2014 (£1=C$1.81).
Gross premium uses average exchange rate for
2014 (£1=C$1.82).
Rest of
Europe
11%
Central Asia
and Asia Pacific
8%
Other Americas
Lloyd’s global business breakdown
4%
Rest of
the world
MULTIPLE CLASSES, MAXIMUM INNOVATION | 4
Multiple classes, maximum innovation
The scope of the Lloyd’s market and our underwriters’ talent and expertise produces
innovative solutions across multiple classes of business in Canada and worldwide.
We provide cover for all classes of business, including the following:
Marine
Lloyd’s is an industry leader in marine
business. Main classes include hull, cargo,
marine liability and specie (the insurance
of valuable property such as precious
metals, art or jewelry).
Aviation
Lloyd’s is an industry leader in the global
aviation market and writes across all main
business segments including airline,
aerospace, general aviation and space.
Airline (hull and liability) is the largest
segment but Lloyd’s aviation is also actively
involved in the underwriting of general
aviation (eg privately owned light aircraft,
helicopters and large private corporate jets),
airport liability, aviation product
manufacturers’ liability, aviation war/
terrorism and satellite launch/in-orbit risks.
Liability
Lloyd’s is a top player in the liability class of
business with 18% market share in Canada.
Liability is Lloyd’s largest class of business
and covers a broad range of classes
including professional indemnity, directors
and officers liability, cyber liability, medical
malpractice and general liability.
Energy
The Lloyd’s energy sector includes
a variety of onshore and offshore property
and liability classes, ranging from
construction to exploration and
production, refinery and distribution.
Alberta is home to the third largest crude
oil resource in the world.
Property
Lloyd’s has long been a home for complex
or unusual risks. The commercial property
class for Lloyd’s in Canada represents
approximately 86% of the total direct
property premiums written. Lloyd’s also
provides a small amount of coverage for
residential risks, of which 62% is written
in B.C.
Reinsurance
Lloyd’s is among the world leaders
in reinsurance, bringing global capital
to support insurance businesses exposed to
catastrophes. Lloyd’s reinsurance business in
Canada covers a wide range of classes and is
written primarily as treaty with property as
the predominant class, accounting for over
66% of the total. Casualty ranks second
with 11% and Marine at 6% of the total
reinsurance placed from Canada.
Emerging risks
From climate change to terrorism and
energy security to liability, businesses
need to understand emerging risks to
successfully lead their organizations
into the future.
Lloyd’s emerging risk reports bring
together the views of some of the
world’s leading academic, business
and insurance experts.
We analyze the latest information on
emerging risks to ensure we’re able to
provide new risk management
solutions in a fast changing world.
Read more about emerging risks, visit
www.lloyds.com/emergingrisks
LLOYD’S CANADA – A MAJOR PLAYER | 5
Lloyd’s Canada – a major player
In Canada, Lloyd’s is best known as a market for commercial risks in respect
of property, casualty and specialty classes of business.
Lloyd’s Underwriters have provided
insurance coverage in Canada since before
Confederation. Lloyd’s established its first
representative office (known as Lloyd’s
Attorney in Fact) in Montreal in 1932.
Lloyd’s Underwriters are amongst the
largest providers of commercial
(re)insurance coverage in Canada, insuring
businesses large and small. Lloyd’s has built
its success in Canada on its appetite for
large and specialty risks and the flexibility it
brings to its underwriting approach.
Lloyd’s Canadian market share by province 2014
The Canadian Insurance market is a
mature market and one that reflects the
sophistication and diversity of Canada’s
economy; ranked 10th in the world,
$1.8 trillion dollar GDP – and a population
of 35 million.
24%
In 2014 Lloyds premium in
Canada accounted for
BC
C$2.6bn
20%
AB
27%
ON
14%
15%
QC
Other provinces
Lloyd’s Lineage Platform
The Lineage Platform is the Lloyd’s Canadian
coverholder system used to enter policy and
claims information. This information is used
to automatically create bordereaux and
management reporting, satisfying regulatory
requirements and effect settlement
to and from London.
• Direct
Major Features
• Straight
•
Lineage has the ability to accept both policy
and claim upload data transfers which
eliminates double entry.
• Lineage
provides the ability to monitor and
report on risk and claims data for in-force
business.
Lloyd’s Market Intelligence products contain further
analysis and information on Lloyd’s business in Canada.
www.lloyds.com/CanadaMI
settlements to/from London
of premiums, paid claims and
claims advances.
Lineage Facts
• 55
% of eligible BA (binding authority)
business is currently going through Lineage.
through processing – data entered
once from the coverholder’s broker
management system to their Lloyd’s broker
and the managing agent bordereaux
management system.
Breakdown of Canadian business 2014
44%
2%
5%
35%
2%
2%
5%
2%
3%
Liability
Commercial Property
Personal Property
Accident
& Sickness
Marine
Boiler
Aircraft
Motor
Other
CONTACT US | 6
Contact us
Contact your local Lloyd’s office in Canada for information and
assistance about how to access the Lloyd’s market.
Toronto
Montreal
Sean Murphy
President, Lloyd’s Canada
and Attorney In Fact in Canada
for Lloyd’s Underwriters
sean.murphy@lloyds.com
Lucie Payette
Senior Operations Manager
lucie.payette@lloyds.com
Angela Blackwood
Market Operations
& Regulatory Analyst
angela.blackwood@lloyds.com
Mary Arabian
Senior Executive, Regulatory Affairs
mary.arabian@lloyds.com
Heather Ciavarella
Senior Business Solutions Manager
heather.ciavarella@lloyds.com
For all enquiries, please get in touch with your Lloyd’s contact listed
above or use the contact details below.
Lloyd’s Canada website
www.lloyds.com/canada
Lineage website
www.lloydscanada.com
Email: info@lloyds.ca
Telephone: 1-877-455-6937
Global offices
Africa | Asia-Pacific | Europe | Middle East North America | South America
www.lloyds.com/globaloffices
lloyds.com/linkedin
This guide has been produced for general information purposes only and Lloyd’s does not make any
representations or warranties as to its accuracy or completeness (and excludes, to the greatest extent
permitted, any which may be implied). Lloyd’s accepts no responsibility or liability for any loss or damage
of any nature incurred as a result of any act or omission resulting from, or any reliance on, anything
contained in this guide. This guide does not constitute advice of any kind.
© Lloyd’s 2015 All rights reserved. Lloyd’s is a registered trademark of the Society of Lloyd’s.
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