Lloyd's moves away from QQS to permanent capital

Lloyd's is shifting its focus away from qualifying quota share (QQS) to permanent capital.

Chief executive of investment bank Noble Group Ben Thomson said: "There has been a significant shift in capital provision to the Lloyd's market over the last several years.

"Of the £1bn approximately of QQS for 2003, 80% has been transferred from QQS to permanent capital. The longer-term nature of this capital affects materially the market's ability to reduce capacity quickly as the cycle starts to turn and prices fall.

"It is also interesting to note the interest from different types of investors. Financial investors are still finding the Lloyd's market an attractive place to generate above average returns for the next few years."

Noble & Co has raised capacity for a range of companies and has acted for private and corporate capital. It has acted as adviser to Atrium Underwriting plc, Wellington Underwriting plc, Hardy Underwriting plc, Hiscox Select, Bankside, Kiln Trust, CBS Underwriting, and Lomond Underwriting among others.