PEMBROKE, Bermuda--(BUSINESS WIRE)--AXIS Capital Holdings Limited (“AXIS Capital” or “AXIS” or the “Company”) (NYSE: AXS), today announced it has in-principle approval from Lloyd’s to establish a new syndicate dedicated to providing capacity for new energy projects that have a critical role in supporting the transition to net zero and building a more resilient, economically sustainable world.
Through Energy Resilience Syndicate 2050, AXIS will provide a single access point to specialist insurance solutions for cross-class risks over the lifecycle of projects and activities associated with replacing or displacing fossil fuels through lower-carbon alternatives and supporting energy resilience during the transition phase.
The syndicate brings together existing underwriting expertise in key classes, including in areas in which AXIS already holds a lead position. This will be the first syndicate to specifically focus on insuring organizations’ energy transition journeys, in line with their actions to achieve net zero by 2050, which is crucial for meeting the goals of the Paris Agreement1. Broad in scope, Syndicate 2050 will typically underwrite the construction and operation of technologies and projects that support energy transition. In addition, the Syndicate will insure activities, such as transit, storage, and financing, that support and enable cleaner energy projects. The syndicate will also provide insurance protection for the personnel involved, through professional indemnity and accident & health coverages.
Syndicate 2050 has been developed by AXIS in support of Lloyd’s recognition of the opportunity that protecting the long-term journey to net zero represents for underwriters and its goal to be the insurer of the transition2. Pending final approval by Lloyd’s, AXIS Energy Resilience Syndicate 2050 aims to begin underwriting on April 1, 2024.
“The shift to net zero is among the biggest challenges of our age to be undertaken in the world of commerce,” said Mark Gregory, Head of Global Markets, AXIS. “There is a considerable opportunity for AXIS and the market to step up and demonstrate that we can develop the coverages needed to support energy transition. Through AXIS Energy Resilience Syndicate 2050, we aim to lead the market in offering specialty insurance solutions that enable the investment, innovation, and technological developments necessary to develop cleaner, more resilient sources of energy. Our approach is firmly aligned to the commitment made by Lloyd’s to supporting an ‘urgent and orderly transition to net zero’.”
Mr. Gregory added: “We recognize that organizations’ energy transition brings a high complexity of risk that requires a holistic insurance response, which evolves over the lifecycle of a customer’s journey. To meet this need, Syndicate 2050 brings together our existing cross-class underwriting and claims expertise in key areas of risk associated with building energy resilience. The syndicate will deliver an efficient one-stop channel for brokers and customers to access joined-up, long-term risk protection designed around customers’ needs, and minimizing potential coverage gaps or underinsurance.”
Syndicate 2050 will offer the risk protection that businesses, governments, and public entities need during every stage of their energy transition lifecycle, including:
- Conception and invention
- Securing financing
- Sourcing and moving goods or materials
- Construction
- Operations and maintenance
- Dismantling and repurposing
Ahead of launching Syndicate 2050, AXIS is continuing to work towards meeting further financial and operational criteria to obtain Lloyd’s final approval and permission to underwrite.
About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $5.0 billion at September 30, 2023, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.
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1 United Nations: The Paris Agreement
2 Lloyd’s roadmap consultation: Insuring the transition November 2023
