’We are strongly positioned to enable more insurers to safely realise the vast opportunity that cyber presents,’ says chief executive

Envelop Risk has launched a cyber reinsurance special purpose arrangement (SPA) at Lloyds as part of plans to establish a stand-alone syndicate.

According to Lloyd’s, a SPA is a type of Lloyd’s syndicate that is similar to a reinsurance sidecar in the company market and allows investors to capitalise on a portfolio of business.

In a statement released today (22 January 2024) Envelop Risk said its SPA, called Envelop SPA 1925, was launched at the start of the month.

The firm added that this would support its second underwriting platform and represented the next step in its long-term ambition to establish a stand-alone syndicate.

The SPA is supported by risk capital from Envelop as well as a panel of third-party investors.

It was launched in partnership with Apollo through its strategic partner syndicates business and Apollo Syndicate 1971.

“I am delighted to announce the launch of Envelop SPA 1925, which significantly strengthens our ability to support the growth and resilience of the global cyber insurance market,” chief executive Jonathan Spry said.

“With their support, that of Apollo and through our augmented intelligence approach to underwriting, we are strongly positioned to enable more insurers to safely realise the vast opportunity that cyber presents.”

’Unique partnership’

This came after cyber reinsurance capacity was allocated and written as a new class within Apollo Syndicate 1971 in 2023, with Envelop Risk providing underwriting expertise and insight. 

The new SPA will be based in London, with Chris Baddeley being appointed as active underwriter.

Andrew Gray, director of strategic partner syndicates at Apollo, said: “We are delighted to have been able to help Envelop achieve the next milestone in their Lloyd’s strategy.

”Apollo’s ability to incubate new products within one of our existing managed syndicates, and then support the evolution into an SPA, demonstrates our unique partnership approach to establishing innovative new businesses at Lloyd’s.”