Killik decides it's time clients invested in Lloyd's of London again

Killik & Co is aiming to capitalise on opportunities in the Lloyd’s of London underwriting market by giving clients easier access to the area through a new initiative.

Paul Killik (above), founder and senior executive officer, said the firm was attracted by the market’s countercyclical behaviour in recent years, particularly in 2009 when the sector posted record profits of £3.9 billion.

As a result, the wealth manager has partnered with a Lloyd’s members’ agency to establish a specialist company, Killik Insurance Management Co, which can create tailored limited companies or limited partnerships to participate in Lloyd’s syndicates.

‘It’s a unique offering for our clients: a tailored, limited liability participation administered through Killik Insurance Management Co, which will streamline the process of investing at Lloyd’s and will retain a client’s current Killik & Co relationship,’ Killik explained.

Through Killik Insurance Management, the firm can construct group vehicles with a minimum investment of £100,000 per client if there is sufficient interest.

Meanwhile, a proportion of investments from an existing Killik portfolio or a bank guarantee or letter of credit secured on a portion of an existing portfolio can be used as collateral to support the underwriting. By contrast, a private Lloyd’s investment vehicle for sophisticated investors normally requires a minimum of £600,000 of unencumbered assets.

Using assets twice allows investors to retain income and gains on a portfolio of equities and property investments, alongside the insurance returns from the Lloyd’s portfolio. Moreover, the same assets can also benefit from business property relief for inheritance tax purposes through the vehicle, which means the Lloyd’s vehicles can be used in estate planning.