Envelop Risk, the data-driven cyber (re)insurance and analytics specialist, has launched Envelop SPA 1925. It is a dedicated cyber reinsurance Special Purpose Arrangement (SPA) at Lloyd’s, collaborating with Apollo through its Strategic Partner Syndicates business and Apollo Syndicate 1971. Chris Baddeley, an active underwriter based in London, heads the SPA, which began operations on January 1, 2024.
This strategic move represents a significant milestone for Envelop. It supports its second underwriting platform and paves the way for a standalone syndicate. All are subject to the complete Lloyd’s application process. In 2023, cyber reinsurance capacity was integrated into Apollo Syndicate 1971, with Envelop contributing underwriting expertise. The success of this collaboration has led to the conversion into Envelop SPA 1925, with Lloyd’s approval for growth.
Envelop SPA 1925 enhances Envelop’s well-established Bermuda operations, strengthening its position as a cyber insurer. The launch highlights Envelop’s capability to secure new capital, supported by both Envelop’s risk capital and a diverse panel of third-party investors.
Cyber Insurer
Jonathan Spry, CEO of Envelop Risk, emphasized the SPA’s role in supporting the global cyber liability insurance market’s growth and resilience. Spry sees this as a testament to Envelop’s progress and maturity. In a company press release, Spry expressed enthusiasm for what is to come at Envelop, saying, “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.”
Andrew Gray, Director of Strategic Partner Syndicates at Apollo, praised the collaboration. Gray 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. ”
Envelop SPA 1925 received advisory support from Howden Tiger throughout the transaction. With the backing of investors, including Apollo, Envelop aims to lead the market in managing risk capital for cyber, leveraging an augmented intelligence approach to underwriting.
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