Nephila to launch new ILS investor backed syndicate at Lloyd’s in Q4

Nephila Capital has announced that the Lloyd’s Council has given “in principle approval” to Nephila’s plan to form a new syndicate.

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 Q4 2020 as part of the Future at Lloyd’s initiative.

Nephila said Syndicate 2358 will write a “diversified portfolio” of Lloyd’s specialty risks to create a “complementary source” of returns for institutional 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. 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.

Adam Beatty, CEO of NSM, said: “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.”

Frank Majors, co-founder and co-CEO of Nephila Capital, added: “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.”

Lloyd’s CEO, John Neal, said: “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. I look forward to watching Syndicate 2358 develop, following its launch during 2020.”

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