Algorithmic insurance syndicate Ki has entered into a US$130 million sustainability-linked letter of credit (L/C) agreement with three banks to support its growth.

The facility brings together the Environmental, Social and Governance (ESG) objectives of Ki, which operates as Syndicate 1618 on the Lloyd's of London insurance market, with those of its capital providers.

Trio of banks

The facility was led by Barclays with Sumitomo Mitsui Banking Corporation and Natwest and is linked to the ESG rating of Ki's funds in Lloyd's investment portfolios and for Syndicate 1618 assets which also have a lower carbon intensity target than the benchmark.

This builds on the investment guidelines Ki has established for its third-party managers of its assets, which already incorporate ESG principles and targets. The pricing Ki pays for the facility will depend on the compliance of Ki's investment portfolios with these ESG targets.

About Ki

Ki is a standalone business established in 2020 and the first fully digital and algorithmically-driven Lloyd's of London syndicate.

Developed with support from University College London, its algorithm is able to evaluate Lloyd's policies and automatically quote for insurance business through a digital platform which brokers can access directly at any time and from anywhere.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.