Bermudian reinsurers are renowned for providing protection for when the wind blows — but Nephila Capital has struck a deal to provide coverage for when the wind does not blow at all.

Nephila, the world’s largest manager of insurance-linked securities funds, has teamed up with Allianz Global Corporate and Specialty’s Alternative Risk Transfer unit to help a new $600 million wind farm in the US ensure revenue stability, even when the turbines stop turning.

The coverage is in the form of a proxy revenue swap (PRS), a financial derivative that will allow owners of the High Lonesome wind farm in Crockett Counties, Texas, to minimise risks related to price, as well as weather.

The PRS relates to a 295-megawatt portion of the 450-megawatt wind farm, which is under construction and is owned by Enel Green Power North America, a subsidiary of Enel, an Italian corporation.

In a statement, Enel said this was the biggest PRS in the world by capacity for a single plant. Allianz and Nephila executed the PRS in collaboration with REsurety, a renewable energy risk manager.

Lee Taylor, chief executive officer of REsurety, said: “Renewable energy projects are under increasing pressure to deliver predictable returns despite the increasing volatility of the value of intermittent generation.

“We developed the Proxy Revenue Swap specifically to deliver unrivalled certainty of cash flows, regardless of power price volatility and weather-driven intermittency. We are delighted to have had the opportunity to collaborate with Enel, Allianz and Nephila to bring the largest PRS transaction to fruition.”

Nephila was acquired by Markel Corporation last November in a deal worth $975 million. It continues to operate as a separate company within the Markel group. As of last September, Nephila had $12.2 billion of assets under management.