Apollo agrees heads of terms for operational partnership with Pelican Ventures and J. C. Flowers

Apollo Syndicate Management (“Apollo”), the independent specialist insurer and reinsurer, today announced it has agreed heads of terms for an operational partnership with Pelican Ventures Group LLC (“Pelican”) and J. C. Flowers & Co (“J. C. Flowers”). Under the agreement, Pelican and J. C. Flowers will provide additional capital, operational support and distribution to Apollo-managed SPA 6133 as rating momentum accelerates, while Apollo continues to manage the SPA. It is anticipated that the agreement, which is subject to regulatory approvals, will be finalised in the fourth quarter.

Property catastrophe focused SPA 6133 was launched in 2018 with a stamp capacity of £35m. Stamp capacity for 2021 will be £65m. The partnership will enable SPA 6133 to efficiently capitalise on the significantly improved rating environment.

David Ibeson, group CEO at Apollo, said: “There is a significant opportunity in the property catastrophe reinsurance market as rates increase and demand grows and we are pleased that Pelican and J. C. Flowers are supporting our future plans. Both our businesses stand to benefit from this partnership as we look to deliver market-beating returns to our stakeholders and market-leading service to our clients. SPA 6133’s team of reinsurance experts will gain Pelican’s extensive distribution networks and cutting-edge technological and analytical underwriting support. We look forward to further collaboration with such outstanding industry leaders to build on the excellent work of SPA 6133’s team.”