Lloyd’s specialist Apollo has been approved to launch a sidecar-style syndicate in the market, a strategic move that highlights a desire to enhance reinsurance efficiency and to extract more value from the insurance business underwritten through its platform, for its capital partners and itself.The Lloyd’s Council has given in-principle approval to Apollo to set up ReShare Syndicate 1972 and it is expected to commence underwriting from January 1st 2026, initially adopting a follow only approach.Through this, ReShare Syndicate 1972 will provide following capacity on the outwards reinsurance programmes of Apollo managed syndicates, effectively taking a share of the towers and therefore a share of the economics.Which of course means that Apollo can extract a greater proportion of the profitability of business underwritten, while leaning on the third-party capital providers to the new sidecar like syndicate.

It’s a strategy that is becoming increasingly popular in the Lloyd’s market, as firms recognise the ability to lean on external capital sources to lock-in more of the profits their businesses generate in the market.Rather than reinsuring externally, by taking a share of the towers through the ReShare sidecar syndicate, Apollo can benefit from efficient reinsurance capacity backed by third-party capital, while earning some of the profits and likely additional fees as well.It retains a greater share of the economics of the originally written insurance business, through an efficient reinsurance strategy partnered with aligned capital.

Other firms embracing third-party capital and a more internalised reinsurance strategy using sidecar syndicates that operate alongside main platforms at Lloyd’s include .David Ibeson, Apollo Group CEO, said on the announcement, “Following this week’s , we are thrilled to announce the establishment of Apollo ReShare, which demonstrates our innovative approach to enhancing our returns to capital partners.” Nick Jones, Chief Reinsurance Officer, highlighted the strategic relevance of the new sidecar syndicate.He explained, “The creation of a dedicated long-term reinsurer for our managed syndicates will greatly benefit our capital providers.

Apollo ReShare offers highly rated capacity, creates efficiencies in reinsurance spend, reduces execution risk for core placements whilst supporting cycle management.” Interestingly, it seems Apollo looks on this new syndicate as a way to deliver efficient reinsurance capacity to the syndicates that operate on its platform as well, so beyond its own syndicate.“Our future strategy will be to also offer Syndicate 1972 reinsurer support to our platform partner syndicates as part of our forward-thinking approach,” Jones said.That’s a further way for Apollo to extract more of the economics of business that flows through its Lloyd’s platform and infrastructure, further highlighting the fact reinsurance efficiency is coming to the fore thanks to third-party capital and efficient structuring.

Paul Sandi, Head of Reinsurance at Apollo, will also serve as the Active Underwriter for the reinsurance sidecar syndicate ReShare 1972.Sandi also commented, “Syndicate 1972 offers a dynamic and diverse portfolio across property, specialty, and casualty classes, underpinned by a strong track record of success.We are really looking forward to the opportunities this creates for us and our partners as we look to the future.” As Apollo CEO Ibeson said, this move to launch a syndicate that will act as a kind of reinsurance sidecar will enhance the returns of capital partners, while it will also help Apollo generate more revenue from its platform and benefit from the evident reinsurance efficiency this strategy brings to the group.

It’s not clear how Apollo has capitalised the new syndicate at this time, whether a more traditional route or perhaps via London Bridge 2, as was seen in the case of AIG’s sidecar syndicate in the Lloyd’s market..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.