Apollo launches into cyber with MGA deal

Lloyd’s underwriting group Apollo is to create what it claims is “a new class of cyber reinsurance business” in a partnership with specialist MGA Envelop Risk.

As part of the deal Envelop will underwrite the new facility within Apollo’s Syndicate 1971, with effect from the 2023 year of account.

Envelop is a London-based cyber specialist MGA with offices in Bristol and Bermuda – it uses artificial intelligence for tis cyber risk modelling and is also a global specialist reinsurance MGA.

Apollo is a syndicate manager that offers adaptable and flexible underwriting services within the Lloyd’s market – it manages Syndicate 6133, Syndicate 1971 and Syndicate 1969.

Envelop Risk said it has agreed the partnership in order to achieve its ambition of establishing a platform within the Lloyd’s market, having already built a “highly successful and profitable cyber reinsurance business” outside of Lloyd’s.

Mutual success

Matt Newman, active underwriter at Apollo Syndicate 1971, said: “We are committed to delivering mutual success through long-term strategic partnerships, where there is shared vision and alignment.

“Partnering with Envelop is a hugely exciting opportunity to further diversify our (re)insurance offering, but also showcase our flexible, partnership approach to the provision of managing agency services at Lloyd’s – another key step towards our long-term purpose and vision.

“We are delighted to continue attracting market leading and innovative partners to Apollo.”

Jonathan Spry, chief executive of Envelop Risk, explained: “Our mission at Envelop is to become a leading global cyber reinsurance business by combining superior underwriting, capital management, and data-driven proprietary modelling.

“We believe Lloyd’s, with its strong brand and reputation, global license network and unique capital structure, to be a compelling place to build our second underwriting platform alongside Bermuda.”