Insurance fund success inspires plans for launch of second scheme
The SOC Insurance Fund (SOCIF) has raised nearly all the $400m (£259m) it needs for its new venture and is planning to run another scheme next year, industry sources have said.
SOCIF had aimed to raise $120m (£77.6m) from equity investors in the UK and abroad, and $280m (£181m) from bondholders for its scheme at Lloyd's.
The firm will use the $400m to support underwriting through a new Lloyd's syndicate on 12 other Lloyd's syndicates, via qualifying quota share (QQS) reinsurance agreements.
It is understood SOCIF has been so successful in raising the necessary funds that the company is planning to launch a second SOCIF scheme next year.
Fundraising began in late August when a prospectus for equity investors was published.
The close date for equity investors to sign up was originally the end of September, but was then extended until 28 October due to strong demand for the scheme.
SOCIF could not disclose when the bond issue, being arranged by Nomura International, would be finalised.
It said that by the end of November all the funds needed to be raised would be in place.
SOC Group chief executive Tim Riddell said he could not comment on developments due to a confidentiality agreement.