Aegis London increases political and financial risk line sizes

Aegis London has increased its political and financial (PFR) risk line sizes to meet growing market demand.

The firm said its sovereign non-payment – the risk that the government or sovereign fails to fulfil financial obligations – and political risk line sizes had increased from £15.8m to £23.7m.

The syndicate has also doubled its credit non-payment capacity from £7.9m to £15.8m.

The move is in response to increasing market demand, driven by macroeconomic forces, geopolitical uncertainties and growing expertise and investment across Aegis London’s PFR team.

Alex Clarke, PFR class underwriter at Aegis London, said: “Amid heightened geopolitical and macroeconomic instability, businesses worldwide are adopting a more cautious stance and actively pursuing enhanced protection against non-payment.

“In response, we’ve deepened our knowledge across new sectors and asset classes and invested in data analytics and technology to support brokers and clients as events evolve.

“Our market expertise and enhanced technical capabilities means we are well positioned to write complex risks across a range of sectors and jurisdictions.”

PFR outlook

Clarke also anticipates the PFR market will continue growing and Aegis London will assist clients with an even greater range of assets and investments.

He said: “While many insurers may gravitate towards safer risks and sectors higher up the credit curve, there will be opportunities for those who can navigate and identify opportunities below this threshold.

“As volatility and uncertainty remain, so too will demand and growth for PFR.”