Nephila Capital
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Costs associated with Markel's investigations into Catco drove ILS expenses up tenfold for the insurance group in 2019.
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The ILS manager has no current plans to deploy investor capital in cyber underwriting risks. -
This is the first time the Bermuda-based ILS manager is known to have been linked to cyber risk deals.
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Markel is fronting the deal, which will cover insurance business transacted for Nephila by State National.
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The carrier’s ILS revenues tripled year on year after its Nephila acquisition.
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The firms will back the Heart of Texas development via a “proxy generation swap”.
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Nephila Syndicate Management will launch on 11 October 2019.
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The brouhaha over trapped ILS capital has led to the question of whether alternative collateral management solutions will emerge.
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The Oregon Public Employees fund held $119.3mn in two Nephila funds at year end 2018.
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The follow-up investments take its overall ILS allocation to up to $950mn, as it put in place mandates to respond to higher rates.
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The Markel co-CEO also said that “noise” around the performance of new acquisition Nephila will clear up by year end.
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Its new acquisition offset lower revenues from the Markel Catco business, which will take about three years to run off.
