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Blackstone Backs Algorithm-Led Insuring in $500 Million Deal

  • Fully-digital Ki business to be launched in fourth quarter
  • It will perform work traditionally done by underwriters
Lloyd's Of London Ltd. Agrees To Sell Besso Insurance Group To BGC Partners Inc.
Photographer: Chris Ratcliffe/Bloomberg
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Blackstone Group Inc. and billionaire Prem Watsa’s Fairfax Financial Holdings Ltd. are investing $500 million in an algorithm that could help transform the world’s oldest insurance exchange.

The investment giants have thrown their backing behind an algorithm-driven insurance syndicate at Lloyd’s of London, according to a statement Thursday. The deal will fund the expansion of the business, called Ki, to be launched before the end of this year by Fairfax-owned Brit Insurance Holdings.