Nephila, the Bermuda-based insurance-linked securities manager, has funded its newly launched Syndicate 2358, with capital provided through London Bridge Risk PCC (LBR PCC), a Lloyd’s-sponsored protected cell company.
The new transaction provides reinsurance capital from a diverse group of investors, including four pension funds, to support underwriting beginning with the 2022 year of account. The syndicate will focus on short to medium term business lines.
LBR PCC provides an access point into the market for both UK and international investors, including ILS investors.
Nephila has been active in the ILS market for more than 20 years and at Lloyd’s for nine years. By using LBR PCC to channel this investment, Nephila now brings part of its investment activity onshore in the UK.
In addition to this transaction, Lloyd’s also confirmed that Ontario Teachers’ Pension Plan, which was announced as the first investor to use LBR PCC in November, has recently provided a second tranche of capital via LBR PCC to cover further risks in 2022.
“I am again delighted to see LBR PCC being used to support further ILS investments at Lloyd’s and to welcome such a prevalent ILS Investor as Nephila to the platform. This underlines the importance of this initiative to the Lloyd’s marketplace and shows there is real momentum behind ILS support of Lloyd’s, which is great to see,” commented Burkhard Keese, CFO, Lloyd’s.
Adam Beaty, Nephila Syndicate CEO, said: “Using the LBR PCC structure was an efficient way to bring our investors’ capital into Lloyd’s to back our new syndicate. It is encouraging to see an initiative like LBR PCC being introduced to the market by Lloyd’s and we are pleased to have had the opportunity to support it.”
The PCC deploys funds in a tax transparent way into the market, explained Lloyd’s in a statement. Lloyd’s members can use this vehicle to manage their capital requirements by attracting new classes of investors, including pension funds, and will benefit from reduced set-up times and lower transactional costs.
Topics Auto Excess Surplus Lloyd's
Was this article valuable?
Here are more articles you may enjoy.
Anti-DEI Shareholders Are Attacking Corporate America’s Diversity Programs 
California Commissioner Orders Insurance Cancelation Moratorium for 185K Residents 
First Street Finds Most Debby-Damaged Homes Outside Flood Zone, Without Coverage 
Hard Reinsurance Prices Likely to Last Longer Than in Previous Market Cycles: Report 
