18 March 2013ILS

Allianz RT extends risk capacity to Nephila Capital

Allianz Risk Transfer has finalised an agreement with Bermuda-based, Nephila Capital to provide the company with three years of risk capacity.

Allianz Risk Transfer is extending specialist services, balance sheet access and non-recourse leverage to Nephila. The deal will “enhance Nephila’s ability to offer its clients a portfolio of diversified and high quality investment alternatives, while continuing to diversify ART’s business lines."

Commenting on the deal, Bill Guffey, chief underwriting officer of Allianz Risk Transfer Group said: “ART and Nephila have been working together from the earliest days of the insurance-linked investment fund market. We have consistently been at the forefront of the markets’ developments and have mutually benefited from the growth in our respective businesses. We wanted to cement that continuing relationship and send a clear message to our respective shareholders/investors and the market that we are both committed to this business model and its ongoing evolution.”

Touching upon the importance of the deal with Bermuda:Re, Frank Majors, managing director of Nephila Capital said: “as the catastrophe market continues to evolve and the lines between business models blur, our relationship with Allianz becomes more and more important.  They have been an incredible partner in the past, and our ongoing relationship will allow us to maintain the flexibility to offer whatever solution our counterparties need so that we can continue to generate opportunities for our funds.”