24 November 2015 Alternative Risk Transfer

Novae and Securis receive Lloyd’s approval for Syndicate 6129

Novae, the specialist listed Lloyd’s insurer and Securis Investment Partners, the insurance-linked securities (ILS) fund manager have launched a new special purpose syndicate (SPS).

Syndicate 6129 has received Lloyd’s approval and will go live on 1 January 2016 with a stamp capacity of $75 million (£49.5 million).

The Syndicate is capitalised by funds from Securis and is focused on US property excess and surplus lines (E&S) business. The firm’s say the SPS is class specific unlike some other recently formed SPS entities that tend to operate by way of a broad Quota Share Agreement.

Syndicate 6129 represents the evolution of an existing relationship between Novae and Securis, in which a portion of US insurance facilities business is currently ceded to Securis on a collateralised basis. The SPS will expand the portfolio of US facilities business through a combination of Novae’s existing income stream and through access to additional business by both parties.

“Our property division is growing across all insurance classes and we see a significant opportunity to build upon this in the E&S property market,” said Matthew Fosh, chief executive officer (CEO) of Novae.

“This collaboration with Securis allows us to harness new capital in a variety of forms, and demonstrates the success of our partnership to date. We have worked with Securis for a number of years and the innovative structure of Syndicate 6129 enables us to broaden the scope of business we can write, bringing more business to the London market and demonstrating that we can offer exciting new opportunities to innovative industry investors.”

Rob Procter, CEO of Securis, added: "This is an important development for Securis - which helps further build our Lloyd's and specialty presence.

“We are delighted to be working with Novae, one of the premier Lloyd’s franchises, and with whom we have had a strong relationship for a number of years.  SPS 6129 will allow us to support risks in the US primary business, as well as various in specialty lines risks.

“This helps facilitate support from alternative capital in areas of the insurance market other than pure property catastrophe exposed programmes - where the impact of ILS has been felt most keenly to date. The principal beneficiaries will be our investors - who can now support our Lloyd’s and specialty activities either directly through our LCM Fund, or can participate via a number of our products which become better diversified and differentiated as a result.”

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