Nephila gets green light to launch new venture at Lloyd's

Markel-owned Nephila Capital, an investment manager specialising in reinsurance risk, has received in-principle approval from the Lloyd's council to form a new syndicate.

Nephila Syndicate Management Ltd (NSM), Nephila's Lloyd's managing agency, plans to launch Syndicate 2358 in Q4 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 ILS investors looking to broaden their exposure into specialty lines".

Nephila said 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 Syndicate 2357 at Lloyd's, which is backed by funds managed by Nephila, has been trading since 2013.

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."