Trade credit insurer Coface SA announced it received in-principle approval from Lloyd’s to establish a new short-term trade credit syndicate, which will be managed by Apollo Syndicate Management.
Coface stated that the Coface Lloyd’s Syndicate 2546 is expected to begin underwriting in 2025.
The insurer described the syndicate as a valuable addition to its portfolio, enabling it to offer solutions in selected market segments with strong potential for profitable growth in credit insurance at Lloyd’s.
Coface also noted that Gallagher Re provided support and advice during the approval process.
Chief Executive Officer Xavier Durand said the syndicate aligns with the company’s Power The Core strategic plan, which seeks to reinforce and expand its expertise in credit insurance while building a global reference ecosystem for credit risk management.
Insurance companies and experts continue to assess economic conditions, claims trends, and potential growth opportunities stemming from the newly imposed double-digit U.S. tariffs.
According to Hub International, a global broker with a significant presence in the United States and Canada, demand for trade credit insurance is increasing as tariffs heighten risk. Hub stated that businesses engaged in cross-border trade face substantial financial challenges.
Hub further noted that lenders are expected to tighten credit on accounts receivable from foreign buyers and may require trade credit insurance as a condition of lending.
At the same time, as tariff-related accounts receivable grow, insurers may face capacity constraints due to weaker credit strength and rising demand for coverage, the broker added.
