Microsoft guru invests in Lloyd's.

(From Lloyds List)

PAUL Allen, co-founder with Bill Gates of Microsoft, and one of the world's richest men, has moved some of his resources into the Lloyd's market in an important new venture for the 2007 underwriting year, writes James Brewer.

Mr Allen, who is said by Forbes magazine to be worth $22bn, has through his investment vehicle Vulcan Capital majority ownership of catastrophe insurer Icat Holdings, which is to provide $30m, or 20% of the capacity of new syndicate 4242.

Chaucer Syndicates, which with third party investors is to provide the remainder of the capacity, will manage the $148m project for Icat, a Colorado-based managing general agency of which Mr Allen gained control a year ago.

Andrew Holderness, head of the corporate insurance group at law firm Clyde ' Co who advised on the transaction, said: 'This is a groundbreaking deal for a number of reasons.

'It is the first 'new money' into Lloyd's for 2007 and proves yet again what a compelling proposition Lloyd's is for both underwriters and investors.'

Mr Holderness said: 'Leveraging Chaucer's expertise and the Lloyd's licences means that Icat can rapidly grow its business in a capital and cost efficient way, in the type of catastrophe risks for which the market is famous. The investment by private equity and other hedge funds shows again ...