Bermudian-headquartered Nephila Capital is to launch a new ILS investor-backed Lloyd’s specialty syndicate, 2358.

The investment manager said the syndicate would allow Nephila investors the opportunity to access the specialty insurance market in addition to the natural catastrophe and climate-based strategies offered by the firm.

Nephila is the largest institutional asset manager dedicated to investing in natural catastrophe and climate risk.

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

The new 2358 syndicate, which will commence trading on January 1, will focus on short to medium tail lines of business accessed through partnerships with leading underwriters, the company said.

Such relationships will provide unique access for Nephila’s investors to existing profitable markets while allowing those leaders to further develop and invest in their customer proposition, it added.

Nephila Syndicate CEO Adam Beatty said: “With our existing Nephila Managing Agency and the worldwide market for specialty risk being centred in London, a new Lloyd’s syndicate was the obvious choice to further enhance our product offering.

“We’d like to thank Lloyd’s, our risk partners and most of all our investors for supporting this project.”

The syndicate portfolio will be managed by active underwriter, Ross Louden, who added: “We aim to build a profitable and efficient syndicate.

“We will do so by working with people who value the tradition of strategic partnerships yet see the future being defined by a greater delineation between leaders and followers, enhanced placement efficiency and an increased reliance on data and portfolio management techniques.”

Nephila co-CEO Greg Hagood added: “Our investors expressed the desire to access additional non-correlating insurance risks through a trusted institutional manager and we have built a platform that we believe will deliver value for them over the coming years.

“Nephila has invested in the Lloyd’s proposition since its entry in 2013 and we look forward to developing this and other new products in the years to come.”

Nephila had approximately $9.3 billion of assets under management as of November 1.

In addition to its headquarters on the island, Nephila also has offices in San Francisco, Nashville and London.