Cyber re/insurance and analytics specialist Envelop Risk has launched Envelop SPA 1925, a dedicated cyber reinsurance Special Purpose Arrangement (SPA) at Lloyd’s, in partnership with Apollo, through its Strategic Partner Syndicates business and Apollo Syndicate 1971.
The SPA officially launched on the 1st of January 2024 with Chris Baddeley taking the role of active underwriter, based in London.
According to Envelop, SPA 1925 marks an important strategic milestone by supporting its second underwriting platform.
It also represents its longer-term ambition to establish a stand-alone syndicate, which would be subject to the full Lloyd’s application process.
“In 2023 cyber reinsurance capacity was allocated and written as a new class within Apollo Syndicate 1971, with Envelop providing underwriting expertise and insight. Following its success this has now been converted into an SPA with growth approved by Lloyd’s,” Envelop explained.
Envelop Risk CEO, Jonathan Spry, commented, “I am delighted to announce the launch of Envelop SPA 1925, which significantly strengthens our ability to support the growth and resilience of the global cyber insurance market.
“It furthers our ambition of not only being the best at underwriting cyber risk, but at leading the market in the management of risk capital for cyber. To have gained the backing of such highly regarded investors is a testament to the progress and maturity Envelop has achieved.
“With their support, that of Apollo and through our augmented intelligence approach to underwriting, we are strongly positioned to enable more insurers to safely realise the vast opportunity that cyber presents.”
Andrew Gray, Director of Strategic Partner Syndicates at Apollo, said, “We are delighted to have been able to help Envelop achieve the next milestone in their Lloyd’s strategy.
“Apollo’s ability to incubate new products within one of our existing managed syndicates, and then support the evolution into an SPA, demonstrates our unique partnership approach to establishing innovative new businesses at Lloyd’s. ”
The SPA is supported by risk capital from Envelop as well as a diverse panel of third-party investors. Howden Tiger acted as adviser on the transaction.
