Allianz and Oaktree Launch Lloyd’s Syndicate 1890 to Expand Reinsurance Capital

Allianz SE and Oaktree Capital Management have partnered to establish a new reinsurance syndicate named Syndicate 1890 on the Lloyd’s of London market, set to begin underwriting on January 1. This collaboration represents a growing trend of private capital firms entering the property-and-casualty reinsurance sector, traditionally dominated by established reinsurers. The syndicate will enable Allianz to allocate part of its reinsurance programs while Oaktree will provide the capital funding and manage the associated assets. The Lloyd’s syndicate structure offers Allianz advantages by circumventing the collateral requirements typical of special-purpose vehicles used in risk transfer arrangements, simplifying the capital provision process for investors. This setup also allows Allianz to access reinsurance more efficiently without the need for bespoke contracts and complex security negotiations. Historically, alternative asset managers have focused on life insurance markets, but firms like Oaktree and Blackstone are now expanding into non-life reinsurance. Blackstone recently announced backing for another Lloyd’s syndicate managed by The Fidelis Partnership, highlighting a competitive influx of private capital into this space. While these alliances bring fresh third-party capital to the reinsurance market, rating agencies such as Fitch have noted increased structural complexity and heightened credit, liquidity, valuation, and governance risks that may become apparent under stressed financial conditions. These risk factors require careful monitoring by market participants to ensure stability. Allianz engaged in discussions with multiple private capital firms before finalizing its agreement with Oaktree. The insurer views this partnership as complementary to its existing relationships with traditional reinsurers, aiming to diversify capital sources and improve operational efficiency in reinsurance underwriting.