Blackstone and Candover, the private equity firms, have led the £448m (€702.9m) investment in Wellington Underwriting, part of Lloyd's insurance, to form Wellington Re, the largest independent reinsurance company based in the UK.

Insurance premiums have sky-rocketed since the attacks on the US on September 11 last year. Industry experts estimate that around $50bn (€53.7bn) of insurance capital was lost and the recapitalisation of the industry offers opportunities to private equity investors that can invest now and take advantage of higher future premiums.