Holding company owning/controlling both a managing agent and also a corporate member as a supplier of capacity to the managing agent’s syndicate(s). Lloyd’s regulations prevent the two companies combining into one. An ILV providing 100 per cent of the capacity is virtually an insurance company operating at Lloyd’s. ILVS can acquire capacity by way of (a) capacity auctions; (b) acquisition of a fellow corporate member; (c) direct offers to other members. Much of the new capital has come from insurance and reinsurance companies, and institutional and other investors, based principally in Bermuda, the US and the UK. ILVS are relatively low-cost insurance operations. The Chairman’s Strategy Group recommended that all managing agents and syndicates should become ILVs.
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A company which owns a corporate member of a syndicate and the managing agent of that syndicate.