Japanese investment bank Nomura is working with Lloyd's members' agency

Soc Group to launch a new company to provide syndicates with additional capacity.

The vehicle will be called Soc Insurance Fund (Socif) and will inject an additional £1.2bn of risks over the next three years.

It will be funded by private investors and bond money, with Nomura arranging the asset-backed bond.

Lloyd's chairman Sax Riley will be the non-executive chairman of Socif.

He said: "The deal is a significant step towards the modernisation of Lloyd's."