Specialty insurer and reinsurer International General Insurance Holdings has launched a Bermudian-based managing general agent focused on global cyber business.

Cipher Underwriting is a specialty treaty reinsurance MGA established by IGI to provide dedicated cyber treaty underwriting expertise and solutions. IGI said the start of Cipher's operations remained subject to applicable regulatory approvals, including the registration and licensing of Cipher by the Bermuda Monetary Authority.

Led by reinsurance specialist Ari Chatterjee, Cipher has been created to address the increasing demand for specialty cyber treaty reinsurance capabilities as cyber-risk continues to evolve across businesses, economies and critical infrastructure worldwide.

Mr Chatterjee has more than 20 years of industry experience with over a decade of cyber reinsurance experience including setting market standards on data and policy wordings. He is the former chief underwriting officer of Envelop Risk.

IGI said the launch of Cipher represented an important milestone in the firm's strategy to expand its specialty reinsurance capabilities through the development of focused underwriting platforms in attractive and growing markets.

IGI owns a 60 per cent interest in Cipher through its wholly owned subsidiary IGI Managing Agencies, providing the artificial intelligence-integrated MGA platform the ability to deploy capital into a diversified worldwide portfolio of specialty reinsurance business.

The initial focus of Cipher is to develop a portfolio of cyber treaty business with lead capabilities, targeting high-growth emerging risks within an MGA structure. This platform can be utilised for future growth and diversification opportunities.

Waleed Jabsheh, IGI’s chief executive officer, said: “This is a significant and exciting development for IGI as we continue to strengthen our specialty reinsurance capabilities and invest in areas of the market where we see strong long-term growth potential. By embedding Cipher within the IGI framework, we achieve immediate product and geographic diversification into non-correlated classes of business.”

"Cyber treaty reinsurance is a highly specialised class requiring deep technical expertise, disciplined underwriting and a thorough understanding of an evolving risk landscape.

“Ari brings significant experience and leadership within the cyber reinsurance market, and Cipher provides a strong platform from which to build a differentiated and sustainable specialty treaty reinsurance business."

Mr Chatterjee added: “We are privileged to partner with IGI in launching Cipher. IGI brings institutional credibility, excellent financial security, strong governance, and an experienced, stable leadership team that will help us capitalise on attractive opportunities and deliver sustainable, risk-adjusted profitability.”

Cipher marks the first venture under the newly formed IGI Managing Agencies, which was established to provide a dedicated platform for strategic partnerships in developing new product lines and incubating teams within an MGA structure.

“At IGI, we are always evaluating opportunities to facilitate profitability-driven portfolio diversification in a measured and disciplined manner,” Mr Jabsheh said.

“Our strategy has always been to enter new markets thoughtfully, with the right talent and structure in place. This partnership embodies that approach, giving us access to new opportunities while maintaining the underwriting discipline that has defined IGI for almost 25 years.”