Investment bank Goldman Sachs is to enter the Lloyd's insurance market on January 1.

Its Arrow Syndicate 2010 has gained approval in principle from the Lloyd's Franchise Board that will allow it to be active in the market, writing mainly property catastrophe reinsurance but also exploring other insurance and reinsurance opportunities.

Arrow Syndicate 2010 will have a stamp capacity of £65 million ($A145.3 million) for 2008.

Goldman Sachs owns Bermuda-based reinsurers Arrow Reinsurance and Arrow Capital Re. The Lloyd's syndicate will not affect the Arrow Re business, which will continue to operate out of Bermuda.

Insurance investment and services provider Whittington Capital Management will manage the syndicate.