Envelop Risk launches new cyber insurance SPA
Envelop Risk launches new cyber insurance SPA | Insurance Business Asia
Reinsurance
Envelop Risk launches new cyber insurance SPA
What are the implications of the new SPA?
Reinsurance
By
Jonalyn Cueto
Data-driven cyber re/insurance and analytics specialist Envelop Risk has launched Envelop SPA 1925, a specialized cyber reinsurance Special Purpose Arrangement (SPA) at Lloyd’s, in collaboration with Apollo through its Strategic Partner Syndicates business and Apollo Syndicate 1971. This strategic move, led by active underwriter Chris Baddeley based in London, began on January 1, 2024.
According to a Press release, Envelop SPA 1925 is a key achievement, marking support for Envelop’s second underwriting platform. It serves as a stepping stone towards Envelop’s goal of establishing a stand-alone syndicate, subject to the rigorous Lloyd’s application process.
In 2023, Envelop played a crucial role in the allocation and underwriting of cyber reinsurance capacity within Apollo Syndicate 1971. The Press release said the success of this endeavor led to its transformation into an SPA, garnering approval for growth from Lloyd’s. Operating in tandem with Envelop’s well-established operations in Bermuda, it is supported by risk capital from Envelop as well as a diverse panel of third-party investors, the Press release said.
“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,” said Jonathan Spry, CEO of Envelop Risk. “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, shared his enthusiasm, saying: “We are delighted to have been able to help Envelop achieve the next milestone in its Lloyd’s strategy. Apollo’s ability to incubate new products within one of our existing managed syndicates, and then support the evolution into a SPA, demonstrates our unique partnership approach to establishing innovative new businesses at Lloyd’s.”
Apollo, through its Strategic Partner Syndicates, offers bespoke managing agency services to third party partners.
Howden Tiger acted as adviser on the transaction.
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