Envelop builds on Bermuda success with Lloyd's SPA
Envelop Risk, a cyber re/insurance specialist with an office in Bermuda, has moved one step closer to its goal of having a stand-alone Lloyd's syndicate.
Envelop said it had launched a dedicated cyber reinsurance special purpose arrangement at Lloyd’s in partnership with Apollo through its strategic partner syndicates business and Apollo Syndicate 1971.
Envelop SPA 1925 launched on January 1 with Chris Baddeley in the role of active underwriter, based in London. Envelop is based in Bristol and has offices on London and Bermuda.
"Envelop SPA 1925 marks an important strategic milestone by supporting Envelop’s second underwriting platform and 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," the company said.
Envelop said that in 2023, cyber reinsurance capacity 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 company said. "The SPA complements Envelop’s well-established Bermuda operations and increases the overall offering Envelop brings to the cyber reinsurance market.
"The successful launch of the SPA demonstrates Envelop’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."
Jonathan Spry (pictured), chief executive officer, Envelop Risk, said: “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. 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.”
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. ”
Howden Tiger acted as adviser on the transaction.
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