Envelop Risk Launches Cyber Reinsurance Lloyd’s Vehicle With Managing Agent Apollo

Envelop Risk, the data-driven cyber re/insurance and analytics specialist, announced the launch of Envelop SPA 1925, a dedicated cyber reinsurance special purpose arrangement (SPA) at Lloyd’s, in partnership with managing agent Apollo.

Through Apollo’s Strategic Partner Syndicates business and Apollo Syndicate 1971, the SPA launched on Jan. 1, 2024 with Chris Baddeley in the role of active underwriter, based in London.

Envelop SPA 1925 marks an important strategic milestone, supporting Envelop’s second underwriting platform. It represents the next step in Envelop’s longer-term ambition to establish a stand-alone syndicate, which would be subject to the full Lloyd’s application process, according to Envelop in a statement.

Cyber reinsurance capacity in 2023 was allocated and written as a new class within Apollo Syndicate 1971, with Envelop providing underwriting expertise and insight.

Following its success, this has now been converted into an SPA with growth approved by Lloyd’s. The SPA complements Envelop’s well-established Bermuda operations and increases the overall offering Envelop brings to the cyber reinsurance market.

Envelop said the successful launch of the SPA demonstrates the company’s ability to raise new capital to support the growth of the global cyber re/insurance market. The SPA is supported by risk capital from Envelop as well as a diverse panel of third-party investors.

“I am delighted to announce the launch of Envelop SPA 1925, which significantly strengthens our ability to support the growth and resilience of the global cyber insurance market,” commented Jonathan Spry, CEO of London-based Envelop Risk.

“It furthers our ambition of not only being the best at underwriting cyber risk, but at leading the market in the management of risk capital for cyber. To have gained the backing of such highly regarded investors is a testament to the progress and maturity Envelop has achieved. With their support, that of Apollo and through our augmented intelligence approach to underwriting, we are strongly positioned to enable more insurers to safely realise the vast opportunity that cyber presents,” he added.

Andrew Gray, director of Strategic Partner Syndicates at Apollo said: “We are delighted to have been able to help Envelop achieve the next milestone in their Lloyd’s strategy. Apollo’s ability to incubate new products within one of our existing managed syndicates, and then support the evolution into an SPA, demonstrates our unique partnership approach to establishing innovative new businesses at Lloyd’s.”

Through its Strategic Partner Syndicates, Apollo offers bespoke managing agency services to third party partners where there are shared values and a long-term vision.

Howden Tiger acted as adviser on the transaction.

Source: Envelop Risk

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