Securis-backed Lloyd’s SPS’ management taken over by AXIS

by Artemis on January 9, 2018

Management and oversight of the special purpose Lloyd’s of London syndicate 6129 joint venture, which is backed by insurance and reinsurance investment manager Securis Investment Partners, has been taken over by Bermudian re/insurer AXIS Capital, as the firm consolidates its responsibilities following its acquisition of Novae Group.

The Securis backed SPS 6129 was originally launched as a joint venture between Securis and specialist re/insurer Novae Group plc, targeting growth into U.S. facilities business, largely in excess and surplus lines property.

ILS investment manager Securis provided the backing for the underwritten business that flowed through the SPS structure, with stamp capacity of approximately $130 million dedicated to the vehicle in 2017.

The SPS joint venture provides Securis with a way to source returns from U.S. facilities E&S underwriting business in an efficient manner and through a vehicle managed by Novae, a company that had sought diversifying growth in those lines of business.

Now AXIS Capital has taken over the management of the Novae syndicates at Lloyd’s, having completed its acquisition of Novae Group in October 2017.

Through that acquisition, AXIS Capital now benefits from a new capital partner in the form of Securis and its third-party investors, which can only add extra efficiency to its own excess & surplus lines offering in the United States, while Securis could benefit from enhanced access to business.

As a result, AXIS has an extra option for leveraging third-party capital within its underwriting business and the partnership with Securis could become a key one within the firm’s Lloyd’s operations.

AXIS Capital said that its AXIS Managing Agency Ltd. unit has received approval to begin the management and oversight of Novae Syndicate 2007 and the Securis backed SPS 6129 as of January 1st 2018.

“This marks an important milestone in our continued integration of AXIS’ international specialty insurance business with Novae,” explained Mark Gregory, CEO, AXIS Managing Agency, and CEO, AXIS Insurance International Division. “We look forward to continuing to provide our customers with a diversified and balanced portfolio of specialist classes.”

AXIS said that it intends to consolidate its Lloyd’s underwriting business into AXIS Syndicate 1686, under the management of AXIS Managing Agency, in a process expected to complete for January 1st 2019.

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