Nephila Capital news

Nephila Capital, the specialist insurance-linked securities (ILS) and reinsurance investment manager unit of Markel, has promoted Bermuda-based employee Mark Richardson to the position of Head of Underwriting.

Nephila Capital’s specialty lines focused Syndicate 2358 at Lloyd’s continued to expand its operations in 2024, underwriting an impressive 84% more in gross premiums over the year, although its results were hit by losses due to the Baltimore Francis Scott Key Bridge collapse.

Nephila Capital’s Syndicate 2357 at Lloyd’s, which is the flagship syndicate operated by the dedicated investment manager focused on the insurance-linked securities (ILS), weather and catastrophe reinsurance space, underwrote an impressive 41% more in gross premiums in 2024.

Markel Group has reported an increase in insurance-linked securities (ILS) revenues for 2024 from the managed ILS funds of its Nephila Capital unit, while premiums ceded to Nephila reinsurance structures rose by 55% year-on-year.

Given there have been some losses to insurance-linked securities (ILS), Jeremy Noble, President of Insurance at Markel, speaking during the company’s earnings call for Q3’24, provided some context in regards to the upside potential for segment income for the firm’s ILS operation, Nephila Capital, in 2025.

Nephila Capital’s assets under management (AUM) rose by $400 million in the third-quarter of the year to end September 2024 at $7 billion, while revenues from Nephila’s ILS business reported by its parent Markel are also up, if you exclude a one-off from the prior year.

Hedging and portfolio management actions undertaken by Nephila Capital, the insurance-linked securities (ILS) operation of Markel, are in the best interests of investors in the face of a potentially active hurricane season, Jeremy Noble, President of Insurance at Markel explained today.

Markel has again reported an increase in revenues earned through its insurance-linked securities (ILS) investment management business for the second-quarter of 2024, but manager Nephila Capital’s assets under management (AUM) slipped slightly to $6.6 billion by the end of the first-half of the year.

Collateralized capital markets backed reinsurance capacity and insurance-linked securities (ILS) fund managers have taken roughly two-thirds of Florida Citizens traditional reinsurance tower at the recent renewals, with Nephila Capital remaining the largest of those markets.

Markel has announced the promotion of Phil Schmidt to the role of Chief Strategy Officer, a position that will see him tasked with leading initiatives that bring together and realise synergies from the insurance and reinsurance related units of the company, including insurance-linked securities (ILS) operation Nephila Capital.