Bermudian-based Nephila Capital, the world’s largest manager of insurance-linked securities, has selected finance automation software provider Phinsys to provide the accounting and finance platform to support the launch of its Lloyd’s managing agency.

Nephila Syndicate Management Ltd will use the Phinsys suite of finance and accounting products to streamline its financial processes and automate statutory, regulatory and management reporting.

Nephila Syndicate 2357 is to migrate next month from third-party management to management by NSML.

With Lloyd’s targeting a 50 per cent reduction in the markets’ expense ratio over the next five years, Nephila has prioritised the automation of back-office processes as it implements its own strategy for future growth.

Adam Beatty, chief executive officer of NSML, said: “Reducing the cost of doing business at Lloyd’s was a key driver in choosing Phinsys as our finance technology partner. By streamlining our finance back-office operations we can minimise our expense ratio and accelerate our regulatory reporting.”

Richard Tyler, CEO of Phinsys, said: “By implementing the Phinsys platform of software tools, Nephila has achieved greater control over their financial data, gained valuable insights into how they are performing as a business, and significantly reduced costs to support their operating model and increase profits.”

Nephila Capital offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and private transactions.

The company has been bought out by US insurer Markel Corporation, which has indicated that the firm will continue to be run as a separate entity after the acquisition goes through. The deal is expected to close during the fourth quarter of this year.

Syndicate 2357 is wholly supported by investment portfolios managed by Nephila Capital and writes property catastrophe reinsurance, US insurance and weather risk business.

Founded in 2012, Phinsys is headquartered in London and has offices in New York and Bermuda.