All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

Allianz and Nephila agree three-year deal

Allianz Risk Transfer (ART) has agreed a three-year deal to provide risk capacity for Bermudian fund manager Nephila Capital, marking the first time the pair have formalised their relationship over a longer term.

Allianz Risk Transfer Group's chief underwriting officer Bill Guffey said the two companies had mutually benefitted from the growth in their respective businesses, having worked together from the earliest days of the insurance-linked securities market.

"We wanted to cement that continuing relationship and send a clear message to our respective shareholders and investors and the market that we are both committed to this business model and its ongoing evolution."

The deal covers both catastrophe and weather products, which Guffey said would help to diversify ART's business lines.

ART provides access to its rated balance sheet and non-recourse leverage for Nephila, which would otherwise have to write business on a fully collateralised basis.

The two firms did not provide any indications of the amount of capacity that ART is willing to offer Nephila, which manages $8bn of third-party capital.

Nephila's management committee said ART's flexibility and creativity had generated significant value for the company's investors. "We are very appreciative that ART has made this commitment to Nephila, and we look forward to working together for many more years."

Nephila also recently received permission to launch a £100mn Lloyd's syndicate to write county weighted industry loss (CWIL) products, which will extend its ability to offer rated paper as these products had not been underwritten through the ART relationship.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree