Envelop Risk has launched Envelop SPA 1925, a dedicated cyber reinsurance special purpose arrangement at Lloyd’s, in partnership with Apollo through its strategic partner syndicates business and Apollo Syndicate 1971.

The SPA launched on January 1 with Chris Baddeley in the role of active underwriter, based in London.

The data-driven cyber reinsurance and analytics specialist said Envelop SPA 1925 marked an important strategic milestone by supporting Envelop’s second underwriting platform and represents the next step in its longer-term ambition to establish a stand-alone syndicate, which would be subject to the full Lloyd’s application process.

In 2023 cyber reinsurance capacity was allocated and written as a new class within Apollo Syndicate 1971, with Envelop providing underwriting expertise and insight.

Following its success, the company said, this had now been converted into an SPA with growth approved by Lloyd’s.

The company said the SPA complemented Envelop’s well-established Bermuda operations and increased the overall offering Envelop brought to the cyber reinsurance market.

It added that the successful launch of the SPA demonstrated Envelop’s ability to raise new capital to support the growth of the global cyber reinsurance market.

The SPA is supported by risk capital from Envelop as well as a diverse panel of third-party investors.

Envelop Risk chief executive Jonathan Spry said: “I am delighted to announce the launch of Envelop SPA 1925, which significantly strengthens our ability to support the growth and resilience of the global cyber insurance market.

“It furthers our ambition of not only being the best at underwriting cyber risk, but at leading the market in the management of risk capital for cyber.

“To have gained the backing of such highly regarded investors is a testament to the progress and maturity Envelop has achieved.

“With their support, that of Apollo and through our augmented intelligence approach to underwriting, we are strongly positioned to enable more insurers to safely realise the vast opportunity that cyber presents.”

Andrew Gray, director of strategic partner syndicates at Apollo, said: “We are delighted to have been able to help Envelop achieve the next milestone in their Lloyd’s strategy.

“Apollo’s ability to incubate new products within one of our existing managed syndicates, and then support the evolution into an SPA, demonstrates our unique partnership approach to establishing innovative new businesses at Lloyd’s.”

Envelop Risk, founded in 2016, is headquartered in Bristol and has offices in Bermuda, London and San Francisco.