Goldman Sachs has entered the Lloyd’s market with the creation of a turnkey syndicate, it announced this week.
The move comes amid speculation that the investment bank had been trying to extend its operations in the insurance market by buying broker Benfield. But the £700m deal is believed to have collapsed.
Arrow Syndicate 1901 will be controlled by managing agent Whittington Capital Management, and will write a worldwide book of property catastrophe and other reinsurance business.
Reports suggest it will have a capacity of £65m for 2008.
Goldman Sachs described its entry into Lloyd’s as a “logical extension” to its Bermuda operation, Arrow Capital Reinsurance Company, which writes property and casualty reinsurance for the investment bank.
Whittington will provide third party services and other support functions as the syndicate develops. But Goldman Sachs said it was too early to say when the syndicate would break away from Whittington and operate independently.
Goldman Sachs also has a 34.8% stake in Barrie & Hibbert, which provides asset modelling and associated consulting services to the European insurance industry, as well as other financial institutions.
A Goldman Sachs spokes-man said: “We have been in Bermuda since 2005, so going into Lloyd’s was a logical extension”.