Nephila Capital’s New Syndicate 2358 Funded by Lloyd’s Sponsored Investment Vehicle

Nephila, the Bermuda-based insurance-linked securities manager, has funded its new 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 from account year 2022. The syndicate will focus on short to medium term trades .

LBR PCC provides a market access point for UK and international investors, including ILS investors.

Nephila has been active in the ILS market for over 20 years and with Lloyd’s for nine years. Using LBR PCC to channel this investment, Nephila is now bringing some of its onshore investment business to the UK.

In addition to this transaction, Lloyd’s has also confirmed that Ontario Teachers’ Pension Plan, which was announced as the first investor to use LBR PCC in November, recently provided a second tranche of capital through LBR PCC to cover other risks in 2022.

“I am once again delighted to see LBR PCC being used to support new ILS investments at Lloyd’s and to welcome such a mainstream ILS investor as Nephila to the platform. This underscores the importance of this initiative to the Lloyd’s market and shows that there is real momentum behind ILS’ support of Lloyd’s which is great to see,” commented Burkhard Keese, Lloyd’s Chief Financial Officer.

Adam Beaty, CEO of Nephila Syndicate, said: “Using the LBR PCC structure has been an effective way of bringing capital from our investors to Lloyd’s to support our new syndicate. It is encouraging to see an initiative such as LBR PCC being introduced to the market by Lloyd’s and we are delighted to have had the opportunity to support it.

The CCP deploys funds in a tax-transparent manner in the market, Lloyd’s explained in a statement. Lloyd’s members can use this vehicle to manage their capital needs by attracting new classes of investors, including pension funds, and will benefit from reduced set-up times and reduced transaction costs.

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