Insurance giant Lloyd’s of London has successfully issued its first bonds, despite investor confusion over how to assess the society’s fundamental credit risk. Lloyd’s issued two subordinated bonds: a £300 million bond maturing in 2025 and a €300 million bond maturing 2024.
Lloyd’s of London is atypical of the insurance sector. It is not an insurance company as such, rather an insurance market of members. Lloyd’s members form ad hoc syndicates to accept insurance business. They are not joint