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Lloyd’s announces Nephila Capital’s new Syndicate 2358 funded through London Bridge Risk PCC Ltd

21 Dec 2021

Lloyd’s has today announced that leading investment manager Nephila has funded its newly launched Syndicate 2358, which focuses on short to medium term business lines, with capital provided through London Bridge Risk PCC (LBR PCC).

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.

Nephila has been active in the insurance-linked securities (ILS) market for over twenty years and at Lloyd’s for nine years, and by using LBR PCC to channel this investment, now brings part of its investment activity onshore in the UK.

In addition to this transaction, Lloyd’s is also pleased to confirm that Ontario Teachers’ Pension Plan (Ontario Teachers’), who were announced as the first investor to use LBR PCC in November, have 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.”
Burkhard Keese, CFO, Lloyd’s
“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.”
Adam Beaty, Nephila Syndicate CEO

The PCC operates under the UK Risk Transformation regulations and provides an access point for both UK and international investors, including Insurance-linked Securities (ILS) investors, to deploy funds in a tax transparent way into the Lloyd’s market. 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.

1. Find out more about investing at Lloyd’s here and about the London Bridge Risk PCC here
2. London Bridge Risk PCC was sponsored by Lloyd’s as part of its Future at Lloyd’s strategy
3. Lloyd’s acted as the sponsor for the application to form the new PCC. The PCC will be owned by an Orphan Charitable Trust, providing an independently managed Transformer vehicle to the market, directly regulated by the PRA and FCA. London Bridge Risk PCC Limited will provide independent services to investors and Members of Lloyd’s. Day-to-day management will be provided by Horseshoe Ltd with overall responsibility for running the PCC resting with the Board of London Bridge Risk PCC Ltd. 
4. The London Bridge Risk PCC Ltd Board is made up of three Directors: Mike Baker from Horseshoe as the CFO, Helena Whitaker from Intertrust Ltd as the CEO, and Mark Dyson from Lloyd’s as the Chair.
5. London Bridge Risk PCC Limited’s insurance management services will be provided by Horseshoe, who specialise in the management of ILS vehicles and operate across multiple jurisdictions.
6. More news and information available from lloyds.com 

Enquiries to:

UK: 

+44 (0) 20 7327 5111 | pressoffice@lloyds.com 
+44 (0)20 7327 5391 | annie.roberts@lloyds.com 

Americas: 
+44 (0) 20 7327 6125 | nathan.skinner@lloyds.com 

EMEA: 
+44 (0) 20 7327 5721 | Elliot.Maule@lloyds.com 

APAC: 
+65 6870 9227 | Suganthy.Selva@lloyds.com 

About Lloyd’s
Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world. 

The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally. 

It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale. 

And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.

The Future at Lloyd's sets out our strategy to build the most advanced insurance marketplace in the world. 

About Nephila Capital
Nephila is a leading investment manager specializing in catastrophe and non-catastrophe specialty (re)insurance, climate, and weather risk. The firm has been active in the ILS markets since launching its first fund in 1998 and offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and private transactions across its robust platform. Nephila has approximately $9.3 billion in assets under management as of November 1, 2021 and is headquartered in Bermuda, with offices in San Francisco, CA, Nashville, TN, and London. There are currently over 130 employees across its various business lines with expertise in finance, seismic engineering, catastrophe modeling, risk management and traditional underwriting.

About Nephila Syndicate Management Ltd
Nephila Syndicate Management Ltd is Nephila’s managing agency at Lloyd’s.  Syndicate 2357 was the first syndicate at Lloyd’s to be wholly backed by capital from managed ILS portfolios raised from institutional investors. It is wholly supported by investment funds managed by Nephila Capital and writes Property Catastrophe Reinsurance, US insurance and weather risk business.

About Horseshoe 
Horseshoe, an Artex Risk Solutions company, is the world’s largest Insurance Linked Securities (ILS) service provider, leading the way in integrated ILS solutions and fund services. With over 100 professionals and operating globally, Horseshoe specializes in insurance management, risk transformation, fund administration, actuarial advisory and corporate services. Please visit www.horseshoeglobal.com for more details.