Nephila Capital announced that the Lloyd’s Council has given in-principle approval to Nephila’s plan to form a new syndicate.
Bermuda-based Nephila is the largest institutional asset manager dedicated to investing in natural catastrophe and weather risk. Nephila’s Syndicate 2357 at Lloyd’s, which is backed by funds managed by Nephila, has been trading since 2013.
Nephila Syndicate Management Ltd. (NSM), Nephila’s Lloyd’s managing agency, has been given approval to create Syndicate 2358, which it plans to launch in the fourth quarter of 2020 as part of the Future at Lloyd’s initiative.
Syndicate 2358 will write a diversified portfolio of Lloyd’s specialty risks to create a complementary source of returns for institutional insurance linked securities (ILS) investors looking to broaden their exposure into specialty lines.
The new syndicate will seek to partner with leading underwriters in targeted classes of business who can put the syndicate’s capital to work to the mutual benefit of capital providers, explained Nephila in a statement. Adopting this “follow” model allows for efficient and flexible access to risk. NSM will manage the portfolio and seeks to generate an attractive risk adjusted return for its investors over time.
“Nephila’s new syndicate represents an exciting step forward in our Future at Lloyd’s ambition, with a route for ILS capital to be more quickly matched with risk,” said Lloyd’s CEO John Neal in a statement.
“We are excited about this new venture for Nephila at Lloyd’s. We see an opportunity to build a high-quality investment proposition for ILS investors and to do it using the unique and attractive features of the Lloyd’s market,” commented Adam Beatty, CEO of NSM.
Frank Majors, co-founder and co-CEO of Nephila Capital, said, “Our Lloyd’s business is an important part of Nephila’s strategy. We are delighted to support the Lloyd’s market further with an innovative new business that can contribute to the Future at Lloyd’s vision.”
About Nephila Capital
Nephila Capital Ltd is an investment manager specializing in re/insurance, climate and weather risk. The firm has been active in the ILS markets since launching its first fund in 1998 and offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and private transactions across its platform. Nephila has approximately $10.2 billion in assets under management as of June 1, 2020.
About Nephila Syndicate Management Ltd
Nephila Syndicate Management Ltd is Nephila’s managing agency at Lloyd’s. Syndicate 2357 was the first syndicate at Lloyd’s to be wholly backed by capital from managed ILS portfolios raised from institutional investors. It is wholly supported by investment funds managed by Nephila Capital and writes Property Catastrophe Reinsurance, U.S. insurance and weather risk business.
Source: Nephila Capital Ltd.
Topics Excess Surplus New Markets Lloyd's
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