Nephila Capital adds $200m for January renewal, lifting AuM to $7.4bn

Nephila Capital, one of the largest insurance-linked securities (ILS) fund management operations in the market, has added $200 million of new capital in time for deployment around the January reinsurance renewals, which took its assets under management to $7.4 billion.

The end of the year is a key point in the ILS capital raising calendar and many ILS managers raise fundsl that become effective as of January 1st, timed to coincide with the all-important reinsurance and retrocession renewals deployment opportunity.

Having seen its assets under management decline in the fourth-quarter of 2022, Nephila Capital added some new inflows from investors in time for January, it transpires.

As we reported yesterday, Markel, Nephila’s parent organisation, had disclosed in its quarterly results that the ILS fund manager’s assets under management had declined to $7.2 billion by December 31st 2022.

Markel said that this decline was driven by changes in investor allocations and redemptions, the challenging capital raise environment, and also the increased cost of capital that has driven changes in the fair value of certain investments.

But Nephila Capital has continued to have success with some investors towards the end of last year.

In a disclosure to update our ILS investment manager directory (if you’re listed please keep us up-to-date), Nephila told Artemis that $200 million of new capital has been added, effective January 2023.

That takes Nephila Capital’s ILS AuM to $7.4 billion as of January 2023, keeping it firmly in the top-tier of ILS managers by assets under management.

We understand that a number of ILS managers have raised new capital in time for the January renewals, given the deployment opportunity in the hard reinsurance market is seen as one of the best for many years.

While these capital raises haven’t been overly significant, we’re told the ongoing velocity of fundraising efforts in early 2023 is accelerating.

View details of many ILS investment managers in Artemis’ Directory.

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