Convex Group is expanding its presence in the Lloyd’s market with the planned launch of a new syndicate focused on long-tail speciality business lines.

The international speciality re/insurer announced that it had received in-principle approval to launch Lloyd’s Syndicate 1987, which is expected to begin underwriting on July 1, subject to regulatory approvals.

The new syndicate will focus on casualty insurance and reinsurance, political risk and trade credit business. Capacity for the syndicate will be provided by Convex.

The launch expands Convex’s existing Lloyd’s platform, which already includes Syndicate 1984.

Paul Brand, chief executive of Convex Group, said the new structure would strengthen the company’s international offering.

“The introduction of Syndicate 1987 strategically complements Convex’s inaugural vehicle, Syndicate 1984, which will remain dedicated to the whole account reinsurance of Convex, whilst streamlining to provide International capacity for direct short-tail risks,” Mr Brand said.

“This dual syndicate structure will provide a comprehensive footprint for international business, ensuring Convex is well positioned to meet the growing demands of its clients and brokers by delivering sustainable, accretive capacity across the entire spectrum of speciality lines.”

The move comes amid a broader shift across the Bermuda reinsurance market as carriers seek growth in casualty and speciality business lines while property catastrophe pricing softens.

Falling property insurance and reinsurance rates alongside increased market capacity have led to several Bermudian-based groups seeing casualty and speciality business as areas offering stronger pricing and underwriting opportunities.

Earlier this month, Hamilton Insurance Group said it was increasing its focus on casualty lines as property market conditions cooled, while Hiscox pointed to growing interest in speciality and casualty business amid softer catastrophe pricing.

Asta will serve as managing agent for Syndicate 1987, while Allison Hollern, head of financial institutions at Convex, is expected to become active underwriter, subject to regulatory approval.