Nephila Capital’s Lloyd’s Syndicate 2357, which is the flagship syndicate run by the dedicated investment manager focused on the insurance-linked securities (ILS), weather and catastrophe reinsurance space, reported a meaningful increase in profits for 2025, while it utilised legacy reinsurance deals to close out risks from prior underwriting years.
Syndicate 2357 reported gross written premiums of almost $465 million for 2025, down from almost $610 million in 2024, with less capacity deployed over the last year.
But, by closing down prior year exposures Nephila Capital is continuing to position its range of underwriting structures to deliver higher profits going forwards, something that the ILS investment manager has been implementing across its business.
Nephila Capital’s Syndicate 2357 is one of the core components of the ILS manager’s reinsurance market and investing infrastructure.
Through this syndicate, Nephila flows catastrophe insurance and reinsurance premiums around the world in a more efficient manner, benefiting from Lloyd’s licensing, leverage and central fund, as well as access to business from that marketplace.
Syndicate 2357 reflects Nephila Capital’s desire to make best use of available regulated platforms to heighten the efficiency of reinsurance capital for its investors and ceding clients. As a result, the syndicate plays an important role in how the ILS manager cedes risk between its various underwriting structures and operations around the world.
For 2025, Nephila’s Syndicate 2357 delivered $235.6 million of profit, an increase of 48% on the 2024 profit of $159 million.
Reinsurance and property insurance premiums make up the majority, as specialty underwriting declined, likely due to Nephila having other strategies and structures more focused on specialty lines.
Excluding the effects of the legacy transactions entered into, Nephila’s Syndicate 2357 would have reported a very attractive combined ratio of just 29.5% for 2025, much better than 2024’s 72.7%.
While less capacity was deployed through this syndicate in 2025, Nephila Capital has plans to increase its market stature again in 2026.
Stamp capacity is projected to reach US $675 million for 2026, so a little higher than 2025’s projected UK £500 million and much higher than the utilised 2025 capacity of US $445 million.
That shows Nephila Capital sees the syndicate 2357 structure becoming more important again for the company this year, as it continues to look to benefit from the efficiencies of the Lloyd’s market to flow its third-party investor capital more efficiently around the reinsurance market infrastructure it has created.
On the legacy transactions, Nephila’s Lloyd’s syndicate 2357 entered into a reinsurance commutation on 2023 and prior underwriting years in August 2025, while also entering into a retroactive loss portfolio transfer agreement for the risks subject to those years as well.
In addition, at the start of 2026, Nephila’s Syndicate 2357 entered into an external reinsurance to close for those 2023 and prior underwriting year’s, to finalise their transfer off the syndicate books it seems.
Nephila Capital continues to leverage the Lloyd’s market platform to profitable effect, with its syndicates there playing an important role within its global reinsurance and ILS investment platform.
By closing down the old underwriting years, the syndicate cleans its books for the future, while realising past loss effects enabling the go-forward performance to reflect the more current underwriting profits and free the structure from legacy effects.
It’s also worth noting that Nephila Capital launched Syndicate 2359 in 2025, its third syndicate and its first in the market to have a pure property catastrophe risk focus. In addition the ILS manager has Syndicate 2358 which is specialty lines focused.
