Lloyd’s of London has issued its first direct insurance policy in China through its fully owned subsidiary Lloyd’s Insurance Company (China) Ltd.

Lloyd’s China was granted a licence to write direct business last year. It has been licensed to write reinsurance in China since 2007, and reinsurance has been the market’s main focus in the developing nation.

Lloyd’s says its four Chinese managing agents – Travelers, Starr, Sportscover and Navigators – will begin underwriting directors’ and officers’, marine cargo and sports contingency insurance, with more managing agents and products expected in the future.

Chairman Lord Levene says the market sees Asia “as crucial to our development this century, and hope it will mirror the success of our venture into America last century”.

Chairman and CEO of Lloyd’s China Eric Gao says reinsurance will continue to be Lloyd’s main source of business in China for some time, “but there is huge potential for our insurance business”.