Lloyd's has given in-principle approval for Credeq Syndicate 1998, a new syndicate focused on credit risk insurance, surety reinsurance and specialty European trade credit.
The syndicate is expected to start underwriting from January 1, 2027, subject to completing the remaining implementation requirements and receiving final permission to underwrite.
Credeq will act as coverholder, with Asta Managing Agency appointed as managing agent. Marsh Capital & Advisory advised on the formation.
London-headquartered Credeq is a specialist credit insurance provider covering guarantees and surety, trade credit, credit risk insurance and AI risk. It brings together businesses with more than 35 years of credit insurance history, including South African guarantee and surety provider Lombard, Australia’s Assetinsure and Nordic Guarantee, which have been unified under the Credeq brand.
The group operates in 10 countries and manages more than £185 million in annual premium. Martin McConnell, its co-chief executive and head of credit risk insurance, previously ran Assetinsure.
The syndicate gives Credeq its own capacity at Lloyd’s, alongside the insurers and reinsurers it already works with. Credeq said it would provide additional capacity for its credit risk business and open up new growth opportunities.
“Establishing our own specialist underwriting capacity within Lloyd’s is a major milestone for Credeq,” said McConnell.
He said the syndicate would complement the group’s existing capacity partnerships rather than replace them.
Lorraine Harfitt, chief executive of Asta, said the approval reflected the partnership the two businesses had already built.
Credit risk insurance is a niche within the credit market, separate from the trade credit cover many brokers place for corporate clients. It is typically bought by banks and other lenders to protect loan books and transfer credit risk, often helping them manage regulatory capital. Credeq has said its credit risk business partners with major domestic and international banks.
The syndicate’s other two lines are closer to familiar territory. Surety reinsurance supports insurers that issue guarantees and bonds, while specialty European trade credit covers businesses against customers failing to pay.
For specialist credit and political risk brokers, the syndicate adds a dedicated Lloyd’s market for credit risk insurance, a class where capacity has been concentrated among a small number of carriers. More capacity typically means more competitive terms for bank clients looking to transfer risk.
For trade credit brokers, the specialty European trade credit line is worth watching once the syndicate’s appetite becomes clear. A new specialist market could offer an alternative for harder-to-place trade credit risks.
The approach, a specialist coverholder running its own syndicate through a turnkey managing agent, fits a growing pattern at Lloyd’s. Asta, which also manages syndicates for other specialist businesses, has been one of the main platforms for these launches.
