Lloyd’s Names Make a Comeback as Private Capital Finds Its Voice

After years in the shadows, private capital is regaining ground in the Lloyd’s market. A new generation of Names is discovering that underwriting at Lloyd’s can offer both robust returns and distinct advantages.

In a recent episode of The Voice of Insurance podcast, Emily Apple and Andreas Wichmann of Alpha Insurance Analysts laid out a compelling case for this resurgent investment model.

Once dismissed as a quaint relic of Lloyd’s past, the role of the private investor – or Name – is evolving.

Two decades ago, corporate capital was ascendant and private capital looked in terminal decline. But that story has shifted.

“Private capital is now seen as loyal, sticky, and discerning,” said Apple, director and head of syndicate analysis at Alpha. “We’re not obstructive. In fact, some syndicates welcome our capital for the challenge it brings, as well as the alignment it fosters.”

Wichmann, Alpha’s business development director, highlighted the scale of private participation today: their clients alone provide nearly £1 billion in underwriting capacity.

While most Names now use limited liability structures, the commitment remains significant. Apple said Alpha typically advises a minimum capacity of £1.5m – implying net wealth of £10–15m – with the investment forming no more than 10% of one’s portfolio for medium-risk investors.

But the appeal goes beyond the exclusivity. “It’s a fantastic diversifier,” said Wichmann. “It offers low correlation with other asset classes, bond-like volatility with equity-like returns, and unique efficiency through the ‘double use’ of pledged assets.”

Private capital’s attraction has also grown thanks to strong performance.

In 2022, Alpha’s average member earned a 12.5% return on capacity, translating to a 25% return on capital. For 2023, Apple said returns are expected to reach 40% on capital, while 2024 and 2025 look set to deliver between 20-30%.

At the same time, a tighter capital environment is opening doors for Names to support new syndicates and grow allocations to existing ones.

“We’ve seen around 15 new syndicates in the past 12 months,” Apple said. “We recommended three. When we do make a recommendation, 80-90% of our members tend to follow it.”

This selectivity speaks to Alpha’s analyst-driven model. Unlike some rivals, Alpha doesn’t charge profit commission, instead levying fees based on underwriting level.

“We believe our members take all the risk and therefore should get all of the reward,” said Apple.

Alpha steers clear of pooled arrangements such as members’ agent pooling arrangements (MAPAs), preferring to tailor syndicate portfolios individually. This allows them to reflect each member’s specific risk appetite and financial goals.

While the team prefers shorter-tail classes – like property and marine – for their responsiveness and visibility, casualty business is not off the table. “It’s about building a balanced portfolio and being active in managing it year on year,” said Apple.

And beyond syndicate selection, the structure of the market itself offers value. “Preemption rights and tenure arrangements are a crucial part of the investment,” said Apple. “These rights often have monetary value and are traded in the Lloyd’s auctions.”

The recent rise of ‘modified freehold’ arrangements retaining some property rights without full control – has brought a new dynamic. Apple noted that members appreciate these, particularly when they align with performance and potential profit pipelines.

Tax remains a draw, despite changes from April 2026 that will cap inheritance tax relief at £1m and apply a reduced 20% rate thereafter. “Even with changes, Lloyd’s underwriting remains tax-efficient compared to pensions and other investments,” said Wichmann.

Yet Alpha is keen to downplay reliance on tax benefits.

“Our members are here to make underwriting profits,” said Apple. “The numbers stand up in their own right.”

The podcast closed on an optimistic note. Apple described new generations of families becoming involved, legacy capital reinvesting, and newcomers discovering Lloyd’s for the first time.

“People hear about it and say, ‘Why haven’t I looked at this sooner?’” she said. “Yes, it’s high risk, but the advantages – return potential, diversification, and capital efficiency – can be tremendous. We’re feeling quite chipper. Our members are very happy.”