Convex Lloyd’s syndicate adds fresh capacity for political risk and trade credit

Specialty re/insurer Convex Group has received approval to launch a Lloyd’s syndicate with a portfolio that includes political risk and trade credit insurance.

Syndicate 1987 will focus on long-tail specialty lines, including political risk, trade credit, casualty insurance and reinsurance. Asta will act as managing agent, while Allison Hollern, Convex’s head of financial institutions, will serve as active underwriter.

The launch adds capacity to a market facing sustained demand from banks, exporters, commodity traders and investors seeking protection against non-payment, contract frustration, expropriation and political disruption.

Political risk and trade credit insurance have become more important as geopolitical volatility reshapes trade flows and raises uncertainty around counterparties, governments and cross-border payment obligations. For financial institutions, the availability of specialist insurance capacity can support lending appetite and reduce exposure concentration in higher-risk markets.

The development is also relevant to commodity finance, where traders and lenders are increasingly navigating sanctions, sovereign risk, shipping disruption and contract enforcement issues. Insurance does not remove those risks, but it can make some transactions more bankable when structured alongside strong documentation and credit controls.

Convex was formed in 2019 and has built a presence in specialty insurance and reinsurance. The new Lloyd’s platform gives the group an additional route to deploy capacity into specialist risks through the Lloyd’s market.

For trade finance, the move points to continued institutional demand for credit and political risk cover at a time when geopolitical events are creating more frequent stress points across global supply chains.

The launch also follows recent activity in the credit and political risk insurance market, suggesting insurers see room for growth despite a more complex claims and sanctions environment.