£500m syndicate plan

Sedgwick Oakwood Capital (SOC) is planning to launch a £500m Lloyd's investment vehicle with investment from NM Rothschild, a senior Lloyd's insider confirmed this week.

The SOC Group is headed by Sax Riley, who is retiring as Lloyd's chairman later this year.

The source said: "They are looking to create a structure to raise debt and equity and to create a new syndicate. The new syndicate will then participate on syndicates managed by other managing agencies."

It is understood the vehicle may provide capital via qualifying quota shares to other syndicates. This would enable SOC to take advantage of the continuing strong market conditions.

He added that the new vehicle would be a market first. "It is an ambitious plan as it has not been done before," he said.

Market sources say that traditional investment bank NM Rothschild & Sons is advising SOC on the deal.

It is thought that a prospectus will be issued later this year so the structure could be ready for the next financial year.