The Florida State Board of Administration has further diversified its insurance-linked securities (ILS) allocations made on behalf of the Florida Retirement System Pension Plan, with $400 million invested across a quota share reinsurance strategy managed by Tangency Capital and a specialty lines opportunity managed by Nephila Capital.We had previously suggested that , as it was apparent that reinsurance quota shares and specialty lines were in the pipeline for new investments to be made.The Florida state pension was known to have two new ILS investments in its pipeline around the middle of last year, with both specialty and quota share reinsurance investment strategies expected to be onboarded.We explained that, on the quota share side Tangency Capital sprang to mind as one ILS manager offering a specific quota share reinsurance focused fund strategy.

While, on the specialty lines side, Nephila Capital came to mind as an ILS manager that already works with the Florida state pension on catastrophe reinsurance investments, but that has been underwriting specialty lines business for investors in recent years using its Lloyd’s platform for access to risks.It turns out both of our hunches were correct and we now know exactly where the investments went and how much was allocated in each case.In total the Florida State Board of Administration investment team has allocated $400 million to these two new insurance-linked securities related opportunities, we believe on behalf of the Florida Retirement System Pension Plan.

That comes on top of the catastrophe reinsurance focused ILS fund investments already made for the pension, that amounted to almost $2 billion as of the end of Q3 2025.It’s not immediately clear at this time whether the $400 million is all additional to the $2 billion, one of the allocations may have been included in that, or whether there may have been some adjustments to the allocation to accommodate the new funds.What is clear is that $200 million has been allocated to one of Tangency Capital’s flagship investment fund strategies, the Select Market Access Fund Ltd.

This is the first investment Tangency has secured from the Florida State pension plan, becoming a new external investment manager to its roster.That strategy was launched in 2018, not long after we understand.Being a quota share reinsurance strategy, this Tangency managed fund will provide the Florida State pension with an efficient way to access broadly diversified global reinsurance market returns directly, across largely natural catastrophe risks.

Meanwhile, the State Board has also allocated $200 million to a structure named Navaura Holdings Ltd., which we know to be a Nephila Capital managed vehicle.Navaura Holdings Ltd.is the vehicle the investment has been made into, but we understand that Nephila Capital also recently set up a Bermuda domiciled collateralized insurer class of company named Navaura Re Ltd., which is presumably the underwriting structure used for this Navaura strategy.

We also understand that the Navaura strategy has a focus on specialty lines of reinsurance business, so fits the mandate of a diversifying addition to the Florida Retirement System Pension Plan’s ILS investment portfolio.The Florida pension already invests into two Nephila Capital management strategies, so this Navaura becomes the third.The pension has investments into the Arachne SAC Holdings segregated account and the Rubik Holdings structure as well.

For significant investors into ILS and reinsurance establishing multiple access points to risk, leveraging the expertise of multiple investment managers, and diversifying through form, structure and in some cases line of business, is a signal of a large and committed allocator to the space.The Florida State Board of Administration has significant experience in the sector now and is clearly seeking diversification within the ILS asset class, as a way to generate attractive returns across the cycle even when catastrophe risk premiums are softer, as we see today..

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