JDC TECHNICAL EVALUATION REPORT

Subject: Lloyds of London (Market-Wide Legacy Update)

Reference UID: 6051

Market Authority: London & International Markets

Case Ref: LL-LSE-2026-PBO

Secondary Case Ref: LL-GB-2026-RITC

Date: 7th April 2026

Status: Regulatory Oversight / Principles-Based Oversight (PBO) Implementation

Case Summary (Tier 4): As of April 2026, Lloyd’s has finalized the implementation of its “2026 Legacy Reinsurance Guidance,” moving legacy transactions—specifically Reinsurance to Close (RITC) and Loss Portfolio Transfers (LPT)—into a strict Principles-Based Oversight (PBO) framework. This protocol mandates a risk-based review of all ceding and receiving syndicates, triaged by transaction size. The “Legacy Review Panel” now oversees the capital requirements for any member of a receiving syndicate, ensuring that Funds at Lloyd’s (FAL) are lodged before any legacy contract execution is sanctioned. This shift coincides with the “Blueprint Two” sunset, as the market transitions to fully digitized forensic data standards for legacy portfolios.

Case Detail (Tier 5):

• Completion Date: Regulatory framework fully active as of Q1 2026; first QCT (Quarterly Capital Transaction) approvals processed in March 2026.
• Consideration: Capital-neutral for the market overall but requires individual syndicate capital uplifts based on the materiality of transferred reserves.

Additional Comment:

The new oversight specifically targets “Split RITCs” and “Legacy Reinsurance Syndicates,” effectively ending the era of opaque legacy transfers. This is critical for the Everest Re and RiverStone style moves, as Lloyd’s now requires a “Technical Provisions” (TP) audit for every year of account (YoA) involved in a transfer.