Insurance: Allianz Commercial wants to expand its specialty insurance business

The insurer founded its first own syndicate on the London insurance market Lloyd's. The move is part of the strategy to expand the business in sectors such as aviation and shipping.

Allianz Commercial boss Thomas Lillelund: “Lloyd’s will offer us access to additional business that we would not be able to develop on the free market.” Photo: PR, Dpa, Imago [M]

From January 2027, Allianz Commercial will launch its own syndicate “Allianz Commercial 1893” on the London insurance market Lloyd’s to strengthen the specialist insurance division.

The syndicate is expected to write net premiums of up to £117m in the first year and grow gradually.

Allianz Commercial wants to use the syndicate to gain access to special insurance solutions and new regions.

Other insurers such as HDI Global and Generali are also planning their own Lloyd's syndicates to expand their business in London.

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Frankfurt. The industrial insurer Allianz Commercial is setting up its own syndicate on the London insurance market Lloyd’s. The new direct insurance syndicate called “Allianz Commercial 1893” is scheduled to begin operations in January 2027, as the Handelsblatt learned in advance.

According to the company, Lloyd’s has already given its approval in principle. The new syndicate is part of the strategy to strengthen Allianz Commercial's market position in the specialty insurance business.

Lloyd’s is a marketplace that is considered an important center for complex specialist insurance. Examples include insurance solutions for the transport, aviation, marine and terrorism sectors. The financial risks for the insurance policies written are borne by the respective syndicates, which can consist of one or more investors.

“Lloyd’s will offer us access to further business that we would not be able to develop on the free market,” said Allianz Commercial boss Thomas Lillelund to Handelsblatt. The new Allianz syndicate is named after the year in which the insurance group took its first international step and opened a branch in London in 1893. It complements the insurer's previous activities in specialist business and is not intended to replace it.

Allianz Commercial currently generates premiums of over six billion euros with special insurance, which is more than a third of the total premium volume. The syndicate will be built up carefully and written net premiums of a maximum of 117 million pounds in the first year, explained Lillelund. The volume will then be increased in the following years.

In the future, Allianz Commercial hopes to be able to participate in special insurance programs that bundle risks and can only be underwritten through Lloyd's - i.e. would not be accessible to the insurer via the current structures. “We also want to expand our business in regions where we currently only have limited operations,” explains Lillelund.

The step is aimed at expanding US business

For example, in the USA, the largest insurance market in the world, Lillelund wants to strengthen its business in the “Excess and Surplus” sector. These are typically relatively complex specialist risks - part of this market is often cleared through Lloyd's.

Other insurers are also expanding their activities in London. The Talanx subsidiary HDI Global announced in September that it had received approval to set up a Lloyd’s syndicate. The aim is to offer brokers and customers more choices, the company said in a statement.

A few days ago, the Italian insurer Generali also announced its plan to set up a Lloyd's syndicate as part of the group's reinsurance strategy.