Aon and funds managed by Blackstone plan to add reinsurance capacity for Aon clients through Cortina, a Lloyd’s syndicate that would also pay a dividend to participating clients.
Under the planned allocation, eligible property catastrophe excess-of-loss business would account for 3% of treaty lines. The share would be 5% for all other eligible treaties arranged by Aon. Participating clients would receive a dividend tied to Cortina’s portion of their reinsurance programs, but Aon did not disclose how it would calculate payments or their likely size.
QBE will oversee Cortina’s underwriting and governance. For each placement, the syndicate would use the terms set by the lead reinsurer or reinsurers and follow their claims decisions. Lloyd’s members provide underwriting capital through syndicates, each overseen by a managing agent.
Aon President and CEO Greg Case said Cortina would bring together capital from funds managed by Blackstone and QBE’s expertise. Aon has described the arrangement as a multi-year source of capacity, but did not specify a fixed term in its announcement.
The Insurer reported Nov. 2 that its earlier reporting had put potential capital at about $500 million at full take-up, with a three-year term and a 5% discount to lead reinsurers’ terms. Aon’s announcement did not confirm those figures. The Insurer’s Nov. 2 article also recounted concerns its Sept. 18 reporting had attributed to some brokers and reinsurers about competition for business, pricing pressure and strain on reinsurer relationships.
Lloyd’s Council approved Cortina in principle Oct. 16. Aon said the syndicate is completing the steps required before it can underwrite and expects it to begin writing business Jan. 1, 2027, subject to final approval.
