nephila capital

Nephila Capital, the insurance-linked securities (ILS) asset manager owned by Markel, has effectively cleaned up its legacy reserves and eliminated trapped capital for its investors, through an arrangement entered into with the help of an adverse development cover (ADC) from its parent.

Nephila Capital is well-positioned heading into 2024, as having now resolved some legacy side pocket reserves, the catastrophe risk focused investment manager can focus on the market opportunity, according to Jeremy Noble, President of Insurance at Markel.

In the last quarter of record, Nephila Capital unlocked some side pocketed capital and this caused an increase in insurance-linked securities (ILS) revenues reported by parent Markel, while premiums ceded to Nephila’s reinsurers are on the rise, even as assets under management declined further.

Nephila Syndicate 2358, the specialty lines focused syndicate at Lloyd’s operated by insurance-linked securities (ILS) investment manager Nephila Capital, is one of the partners to and beneficiaries of global specialty insurer Mosaic’s syndicated capital program.

Speaking today during the Markel second-quarter earnings call, Jeremy Noble, President of Insurance explained that the team at insurance-linked securities (ILS) fund manager Nephila Capital are working hard to make the most of the attractive reinsurance pricing environment.

At the end of the second-quarter of 2023, assets under management at Nephila Capital, one of the largest insurance-linked securities (ILS) fund management operations in the market, were stable at $7.2 billion and its parent Markel Group reported that revenues from entities managed by Nephila rose slightly in the quarter.

Insurance-linked securities (ILS) investment management specialist Nephila Capital has written just over $756 million of the $2.98 billion reinsurance placement by Florida Citizens at the renewals in 2023, but Berkshire Hathaway was the largest participant with a huge $1 billion line.

Broking giant Marsh has noted that capacity is increasingly an issue and alongside losses this has served to drive US property insurance rate increases higher in the first-quarter of 2023.

Velocity Risk Underwriters, the catastrophe exposed property insurance specialist managing general agency (MGA) operation, is set to exit the homeowners insurance marketplace, Artemis has learned.

Velocity Risk Underwriters, a catastrophe exposed property insurance specialist managing general agency (MGA) operation that was originally set up by ILS manager Nephila Capital is set to acquire one of the fronting carriers from State National that had previously been a source of paper for underwritten business that was channelled to Nephila’s funds.