As part of this strategy to focus on its core markets, Lloyd’s will relinquish its admitted licences in the US Virgin Islands (US VI), Kentucky and Illinois.
Together, these represent around $215 million or 1% of Lloyd’s annual US premium income.
Lloyd’s noted that this decision is not related to the local markets or the business it writes under the licences.
Rather, it sees E&S business as a better fit for its underwriters and favours the product flexibility in this space.
Lloyd’s will provide a window of 12 months during which new business will continue to be allowed, in order to give the market and key shareholders time to make changes to their commercial plans.
After 1st July 2021 no new business or programs will be accepted on the US licensed platforms.
Regarding existing and renewal business, Lloyd’s will be working with the regulators in the licensed territories to develop plans to non-renew this business with as little disruption to the local markets and policyholders as possible.