Blackstone and insurance broker Aon have established a new reinsurance syndicate at Lloyd’s of London, expanding the participation of alternative investment capital in the property and casualty insurance market.
The new vehicle, Cortina Syndicate 1956, will provide multiyear reinsurance capacity backed by funds managed by Blackstone, while QBE will oversee underwriting and governance.
- Aon and funds managed by Blackstone have established Cortina Syndicate 1956 at Lloyd’s of London, with QBE serving as managing agent.
- Cortina will assume 3% of eligible property catastrophe excess-of-loss reinsurance treaties and 5% of other eligible treaties arranged by Aon.
- The syndicate received in-principle approval from Lloyd’s in October and expects to begin underwriting on January 1, 2027, subject to final authorization.
The syndicate is expected to begin underwriting on January 1, 2027, subject to final approval from Lloyd’s.
Cortina received in-principle approval from the Lloyd’s Council on October 16, 2026, and is completing the remaining requirements before operations begin.
The arrangement marks another step in Blackstone’s expansion into insurance-linked investments, where alternative asset managers are increasingly seeking exposure to risks that are less directly correlated with financial markets.
Cortina to assume shares of Aon-arranged reinsurance contracts
Under the agreement, Cortina will participate in eligible reinsurance placements arranged by Aon, providing additional capacity alongside traditional reinsurers.
The syndicate will take a 3% share of eligible property catastrophe excess-of-loss treaties, which provide protection when insured catastrophe losses exceed an agreed threshold.
It will also assume 5% of other eligible reinsurance treaties placed through Aon.
The syndicate will operate through a conventional lead-follow structure, meaning it will accept the terms and claims decisions established by the lead reinsurers on each contract.
This approach allows Cortina to provide additional capital without independently leading the underwriting of every transaction.
Aon said participating clients would also receive a dividend linked to Cortina’s share of their reinsurance programmes, allowing them to benefit from the syndicate’s operating structure.
The arrangement is intended to provide a relatively stable source of capacity across renewal periods while increasing the capital available to insurers transferring risks to the reinsurance market.
QBE to oversee underwriting and governance
QBE will act as Cortina’s managing agent, taking responsibility for underwriting oversight, governance and compliance with Lloyd’s requirements.
The syndicate will operate within the Lloyd’s market, providing access to its established regulatory framework and capital structure.
Aon CEO Greg Case said the partnership would combine institutional investment capital with specialist underwriting expertise to address growing demand for risk transfer.
Blackstone President and Chief Operating Officer Jon Gray said the arrangement would expand the capital available to the reinsurance industry and support capacity through different market conditions.
QBE International CEO Jason Harris described the structure as a new approach to combining institutional capital with established reinsurance underwriting operations.
The participants have not disclosed the amount of capital Blackstone-managed funds will commit to Cortina.
Alternative asset managers expand into property and casualty insurance
The launch comes as alternative investment managers increase their involvement in property and casualty insurance and reinsurance.
Private capital firms have traditionally concentrated much of their insurance activity on life and annuity businesses, where long-duration liabilities can be matched with investments in private credit and other assets.
Property and casualty reinsurance offers a different investment opportunity, with returns influenced by underwriting profitability, catastrophe losses and premium pricing rather than movements in traditional financial markets alone.
According to Aon, property and casualty insurers and reinsurers generated an average return on equity of approximately 17% in 2025, following several years of insurance rate increases.
However, commercial insurance pricing has softened in recent quarters, potentially putting pressure on underwriting margins.
Blackstone has already backed other Lloyd’s reinsurance arrangements, including a syndicate assuming part of American International Group’s risks.
The firm also announced plans in 2025 to support a Lloyd’s syndicate managed by Bermuda-based underwriting business The Fidelis Partnership.
Other alternative asset managers have pursued similar arrangements. Allianz and Oaktree Capital Management established a reinsurance syndicate at Lloyd’s in 2025.
These transactions reflect the growing role of institutional capital in providing insurance and reinsurance capacity.
- For Aon, Cortina adds another source of funding for clients seeking protection against catastrophe and other insurance risks.
- For Blackstone, the syndicate provides additional exposure to reinsurance underwriting through a structure managed by an established insurance group.
Cortina’s underwriting activities remain conditional on receiving final Lloyd’s authorization ahead of the planned January 2027 launch.
