Bermudian-based Axis is to set up its own Lloyd’s managing agency after winning approval from UK regulators.

From next month, Axis Managing Agency will manage Axis syndicate 1686 at Lloyd’s in London.

Mark Gregory, CEO of Axis Managing Agency and Axis Insurance International Division, said: “This is a significant milestone for Axis. It brings us closer to Lloyd’s and its influential community of brokers, while also allowing us to deliver broader strategic value to our customers.

“Axis syndicate 1686 will continue to underwrite the diversified and balanced portfolio of specialist classes in which Axis has an established reputation and market position.”

The new company will replace Axis’ third-party managing agency agreement with Asta Managing Agency, in place since 2014.

Axis said the launch of Axis Managing Agency enabled the company to have a direct relationship with Lloyd’s and to take full advantage of Lloyd’s worldwide licences and extensive distribution network.

And it added the company will also be able to more efficiently manage its Lloyd’s operations, as well as support Axis Reinsurance’s plans to access specialty reinsurance business at Lloyd’s.

Axis Syndicate 1686 underwrites specialist classes that include marine, energy, aviation, terrorism, property, casualty, professional indemnity and reinsurance.

A spokesman for Axis said the authorisation of Axis Managing Agency represents the latest step in Axis’ expansion of its presence in London and its Lloyd’s operations and follows Axis Capital’s announcement that it has made an offer to acquire Novae Group, a diversified specialty insurer and reinsurer that operates through Lloyd’s.

Axis Capital is a provider of specialty lines insurance and treaty reinsurance with shareholders’ equity at the end of March of $6.2 billion and locations in Bermuda, the United States, Europe, Singapore, the Middle East, Canada and Latin America.