Nephila-backed Lloyd’s syndicate gets green light
Asta, the Lloyd’s third party syndicate manager, has announced that Lloyd’s Franchise Board has granted “in principle” approval for Asta Managing Agency Ltd to establish and manage a new Lloyd’s syndicate 2357 backed by Bermuda-based Nephila Capital.
Initially the syndicate will underwrite catastrophe excess of loss reinsurance aimed at those cedants whose requirements generally cannot be fully satisfied by the conventional reinsurance market.
According to Asta, the business written is a more sophisticated version of an Industry Loss Warranty (ILW) that not only reflects the size of insured loss but also reflects the geographic distribution of the cedant’s business to create a tailored index. Nephila has underwritten these products, which have become widely accepted by the market, for a number of years, and a substantial proportion of the syndicate’s business will be renewals of the existing portfolio.
Asta is the Managing Agency and the syndicate is expected to start trading once all operations issues are in place. The syndicate will commence with a stamp gross premium of circa £100 million.
The active underwriter will be Frank Majors, co-founder and current principal of Nephila Capital.
Nephila has also recently recruited Adam Beatty, an experienced reinsurance market professional who joins from Willis Capital Market & Advisory, where he was a managing director focused on reinsurance capital markets matters. Mr Beatty will be based in London and will serve as a point of contact for Asta and Lloyd’s and will support Nephila’s communications with investors and trading partners in Europe.
Stephen Cane, CEO of Asta said: “We are delighted to have guided the syndicate to this key stage in Lloyd’s application process. The new syndicate brings an innovative business product into Lloyd’s, which sits well with Lloyd’s strategy for future growth and product development as envisioned in the Vision 2025 plan, by introducing business that will complement, rather than compete with, existing business lines. In addition, the backing from Nephila brings together the skills of the capital markets and converges them with the re/insurance markets to create new revenues backed by a sophisticated investor base.”
Frank Majors added: “We recognise the benefits of operating within Lloyd’s and are excited to be bringing this new syndicate to the Market in conjunction with Asta.”