Nephila Capital assets under management rose $600m in a year to $7.6bn

Nephila Capital, the specialist insurance-linked securities and catastrophe reinsurance investment manager had a successful twelve months of capital raising, with its assets under management (AUM) rising by $600 million to reach $7.6 billion as of September 30th 2025, Artemis can report.

When Nephila Capital’s AUM was last reported by its parent Markel it was at the end of the third-quarter of 2024 and the figure at the time stood at $7 billion.

The AUM metric has not featured in Markel’s quarterly filings since the end of Q3 2024. But we’ve now learned the figure has risen meaningfully over the last year.

As of September 30th 2025, Nephila Capital’s AUM stood at $7.6 billion, so $600 million up in just twelve months.

Importantly, given the way Nephila’s ILS fund strategies benefit from the Markel infrastructure that the ILS manager utilises, that additional AUM goes a lot further than just the headline figure.

Recall that, in an interview back in July, Nephila Capital’s now CEO Jessica Laird told us that at the time, “The notional reinsurance limit we write today is larger than it was in 2018, when Markel acquired Nephila and AUM was at its peak. Our revenues are higher today as well, even though headline AUM is down ~ 40% since 2018.”

Greg Hagood, co-founder of the ILS investment manager and CEO of Nephila Holdings, further explained in the same interview, “We understand that AUM is the metric league tables track, but our model has shifted to a balance sheet approach with more leverage and thus we need less capital to service our portfolios.”

Which means a $600 million increase over the last twelve-months can effectively write much more in reinsurance premium than Nephila might have back when it had a larger AUM, thanks to the underwriting leverage the ILS manager now benefits from being within the Markel stable.

When Markel reported its third-quarter 2025 results last week, it was clear that Nephila Capital’s catastrophe premiums underwritten had continued to grow and as a result the ILS manager had delivered increased fund management revenues to its parent as well.

Later that same day, Brian Costanzo, Chief Financial Officer at Markel, indicated during the firm’s earnings call that business fronted for Nephila Capital through Markel Bermuda Ltd (MBL) has been performing very well this year, given the low level of catastrophe losses experienced.

The increase in AUM over the last year means Nephila Capital remains one of the largest managers of ILS assets, while continuing to be one of the most meaningful providers of catastrophe reinsurance limit to the market.

It suggests the company is well-positioned to grow further, as opportunities to source and underwrite catastrophe risk allow.

View information on dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, in our Insurance-Linked Securities Investment Managers & Funds Directory.