Envelop Risk has received in-principle approval from Lloyd's to launch Syndicate 1925, graduating from its existing special purpose arrangement (SPA) and opening for business on January 1, 2027. The move gives the cyber reinsurance specialist a permanent platform and room to write beyond its core class.
SPAs at Lloyd's are annual vehicles, structured within a host syndicate's framework. They carry no multi-year capital commitment and are typically used to establish a track record before the full syndicate application process. Envelop said as much when it launched SPA 1925 in January 2024, describing the arrangement as a step toward a stand-alone syndicate.
The 2024 audited accounts for SPA 1925, filed with Lloyd's and audited by Deloitte, show gross written premium of US$41.7 million against stamp capacity of £40 million, a combined ratio of 94%, and a profit of US$0.9 million. The syndicate wrote 74% of its planned income for the year, with the accounts attributing the shortfall to greater competition than anticipated. The accounts also note that reserving was approached cautiously given limited claims data for a new cyber reinsurance book.
Apollo Syndicate Management, a Skyward Group company, acted as adviser on the transition and will continue as managing agent. Chris Baddeley, active underwriter since SPA 1925's launch, retains the role for the full syndicate. Stamp capacity for the 2025 year of account was set at £50 million (US$63 million), up from £40 million in 2024.
Dominic Peters, chief executive of Envelop Underwriting, said Syndicate 1925 would allow the firm to deploy capacity across casualty and specialty lines alongside cyber treaty reinsurance. The announcement does not specify which lines. The expansion into adjacent classes is consistent with a pattern seen among other Lloyd's specialists using a strong performance in one class to build a broader book.
Envelop passed $1 billion in cumulative GWP in December 2024, having achieved a compound annual growth rate of 40 percent since its founding in 2016. The firm operates reinsurance platforms in both Bermuda and London.
The timing of the syndicate launch coincides with a softening cyber reinsurance market. Gallagher Re reported US cyber reinsurance rates fell approximately 32 percent at the April renewals, with surplus capacity maintaining downward pressure. A multi-line syndicate structure gives Envelop more options to allocate capacity as pricing in its core class compresses.
Lloyd's has flagged rising competition in reinsurance as capital returns to the market. The market received more than 50 serious underwriting enquiries in 2025, with 13 new syndicates starting on January 1. Syndicate 1925 will enter a market with more capacity and more competitors than when the SPA launched two years ago.
The syndicate remains subject to final regulatory approvals before commencing underwriting.
