Apollo is the latest Lloyd’s carrier to enter the cyber market following a partnership with SoftBank-backed MGA and modelling firm Envelop Risk to underwrite cyber reinsurance business on its Syndicate 1971.
Under the partnership, Envelop Risk will provide cyber reinsurance structuring capabilities, proprietary analytics and modelling on behalf of Apollo’s “Ibott” Syndicate 1971, which was initially established to write gig economy business.
Effective from the 2023 year of account, Apollo said the new class forms part of an overarching strategy to expand its (re)insurance offering. At a time when Lloyd’s has welcomed a number of cyber-focused entrants, the announcement this morning also hints that the move could be a precursor to Envelop Risk eventually establishing its own Lloyd’s platform.
Commenting on the deal, Matt Newman, active underwriter of Syndicate 1971, said: “Partnering with Envelop is a hugely exciting opportunity to further diversify our (re)insurance offering, but also showcase our flexible, partnership approach to the provision of managing agency services at Lloyd’s: another key step towards our long-term purpose and vision.”
Jonathan Spry, CEO of Envelop Risk, added that Lloyd’s brand, reputation, global licence network and capital structure were compelling factors in the MGA’s decision to build its second underwriting platform alongside Bermuda.
“We have found a very close alignment with Apollo, who share our view on the future development of the (re)insurance market, and look forward to working with the team at Syndicate 1971 on the development of our presence within Lloyd’s over the coming years,” Spry explained.
TigerRisk acted as the adviser on the transaction.