With China Re converting from a Lloyd's Special Purpose Syndicate (off the Catlin Syndicate) to a standalone syndicate from 1 January 2015, the path is set for other re/insurers from developing economies to take a similar interest.
The creation of the standalone syndicate by China Re is a great example of the evolution of the Lloyd’s market as it seeks to widen its appeal in developing economies. That appeal remains very strong providing, as it does, an immediate access to a global network of licenses and an excellent rating.
China Re’s strategic partnership with Catlin was the very first investment project by a Chinese re/insurance company in the Lloyd's market, and this takes it to the next stage. Clearly other re/insurers from Asia, the Middle East and Latin American may be looking for existing businesses with whom to partner.
While some are going down the acquisition route – for example the recent purchase of Antares by Qatar Re and Canopius by Sompo Japan, others will use the Special Purpose Syndicate route to set up independently.