Cyber Reinsurance MGA Envelop Risk Attracts M Infusion to Fuel Global Growth Plans

Envelop Risk, the UK-based cyber insurance/ reinsurance managing
general agent, announced a Series B investment of $130 million, led
by SoftBank Vision Fund 2.

The financing will help Envelop Risk expand its proprietary
machine-learning and data-driven underwriting activity in London
and Bermuda, with hopes to fuel additional growth into new markets
globally and beyond cyber re/insurance.

As part of the transaction, Neil Cunha-Gomes, investor for
SoftBank Investment Advisers, will join Envelop Risk's board of
directors. The transaction is planned to close in October 2021,
subject to shareholder approval.

Envelop Risk underwrites bespoke reinsurance for global
insurance firms, differentiating its products through the
application of advanced cyber analytics, enabling customers to
manage their portfolios with greater precision. The firm can offer
reinsurance capacity combined with pricing technology, policy
wording, and claims support to introduce proven cyber insurance
capabilities into maturing cyber insurance markets. Additionally,
Envelop partners with cyber technology firms to launch embedded
insurance solutions.

Envelop Risk plans to use the proceeds from the round to expand
operations in cyber reinsurance and cyber technology partnerships,
while continuing to invest heavily in predictive analytics for
assessing the likely economic consequences of cyber risks to
commercial entities.

As cyber has become a key trigger in nearly every business area,
the firm said it intends to launch new products in adjacent areas
of corporate risk over the next year. Critically, this raise will
establish a hybrid balance sheet model, enabling the firm to deploy
its own risk capital in alignment with existing partners, the
company added.

"We are delighted to have reached such a significant milestone
in our funding journey. This transaction will allow us to continue
our leadership in data-driven specialty re/insurance underwriting
and will be transformational for our business reach and activity,"
commented Envelop Risk co-founder and CEO, Jonathan Spry.

"For the first time Envelop Risk will be able to assume
positions in risk capital, which gives us greater alignment with
our partners. We are all really excited to work with SoftBank
Investment Advisers and together meet the huge opportunities that
we see present in emerging and complex risk underwriting," he
added.

"Digital systems have reshaped our world, but they are also
vulnerable individually, and as integrated networks. Cyber
insurance plays a critical protective role," said Paul Guthrie,
co-founder and COO of Envelop. "Envelop deploys capital
thoughtfully into the cyber insurance ecosystem, providing
assurance that mitigation resources are available immediately upon
an attack, so organizations can continue to function in the face of
these risks."

"We believe Envelop Risk has developed a proprietary data-driven
approach to meet this threat through an enhanced level of
protection that directly translates to lower loss ratios," said Karol Niewiadomski, senior investor for SoftBank Investment
Advisers. "We're pleased to partner with Envelop Risk in its
journey to enable risk capital and provide much needed capacity to
the nascent cyber risk market."

Envelop Risk is a global specialty cyber and emerging risk
underwriting firm, headquartered in Bristol, UK, with offices in
London, Bermuda and San Francisco. Envelop Risk's proprietary model
addresses the complexity of cyber and other emerging risk by
combining artificial intelligence; security analytics; economic,
financial and behavioral analysis, and modeling and simulation.

Source: Envelop Risk

*This story ran previously in our sister publication
Insurance Journal.