Euclid Cyber launches with Spinnaker backing to target $1 billion plus revenue band

27 Feb 2025
Euclid Cyber is launching on March 1 with backing from fronting company Spinnaker, bringing to market an excess cyber product that offers insureds with $1 billion or more in revenue up to $5 million in limit that attaches at $75 million and above.
Sister publication Cyber Risk Insurer exclusively reported in October that former Munich Re U.S. cyber practice leader Annamaria Landaverde had moved to John Colis-led Euclid Program Managers to launch the new venture.
In addition to Landaverde, Euclid Cyber is co-led by former Munich Re cyber executive Colette Fearon, with both serving as co-managing principals of the female-owned and operated MGA. A spokesperson for Euclid confirmed the MGA’s launch in a statement to Program Manager. “Each with over 20 years of experience in the insurance and reinsurance fields, Annamaria and Colette are well-poised to foster long-term relationships, support the complex needs of large organisations and assist broker partners with the flexibility and speed of a nimble organisation,” the statement said.
OFFERING SPANS TECH E&O AND CYBER
Euclid Cyber said that its solutions will protect businesses from the evolving risks associated with data breaches, cyberattacks and other online threats.
It added that when blended with cyber coverage, the company also offers E&O insurance to help professionals and businesses mitigate the risks of negligence, errors, or omissions in their performance of technology, telecommunications and/or miscellaneous professional services.
“The current cyber insurance market is estimated to be around $16 billion and is equipped to grow as threats evolve,” Fearon said in a statement.
“To address the growing needs of the cyber market, we believe this is the right time for Euclid Cyber to bring our experience to the market and support to these clients.”
Landaverde said that companies have become almost wholly dependent on technology and third- party service providers to conduct their business.
“Coupled with the rapidly evolving threat landscape and the potential for large-scale events, the operational and financial risk to these organisations is more costly and complex than ever,” she explained.
“With over 40 years of combined experience, we bring unique perspectives on offering comprehensive, yet sustainable, cyber and E&O coverage.”
Fearon added that Euclid Cyber is enthusiastic to be working with Spinnaker, which is understood to be retaining “a meaningful” amount of risk. The Hippo subsidiary is in turn backed by a panel comprising “a handful” of reinsurers.
“With the backing of Spinnaker’s capital and experience of its claims and underwriting teams, we look forward to supporting the cyber industry and our broker partners for their insurance needs,” Fearon said.
Colis, president and CEO of Euclid Program Managers, said his firm is “thrilled” to be partnering with Fearon and Landaverde.
“Their expertise and vision align perfectly with Euclid's values and goals,” he said.
“We are committed to wrap Euclid Cyber into our platform to allow them to focus on their underwriting craft. Together, we will achieve new heights and create exceptional value for our clients."
‘SIMPLE, SMART, NIMBLE’ SOLUTION
In an interview, Landaverde acknowledged that Euclid Cyber had developed its product fairly quickly since she joined the platform in October.
“It's very entrepreneurial,” she commented, stating that building out a new cyber MGA has presented her and Fearon with the opportunity to put their “stamp” on the market.
“We think there's an opportunity here to bring something that's simple, smart and nimble to the market,” Landaverde commented.
She explained that Euclid Cyber will offer cyber coverage on a standalone basis, as well as a blended product including tech E&O.
“We know the wordings inside out. We really understand cyber and E&O risk, not just cyber,” she explained.
“We have spent lots of time analysing loss trends and where the market is from a profitability and a growth standpoint, and we think that there's an opportunity here to bring all of that back to the market.”
She expressed confidence that Euclid Cyber will be able to build “a very strong and meaningful and sustainable portfolio”, with plans to support clients beyond just providing capacity by working alongside them to develop what she said are “appropriate risk solutions”.
Euclid Cyber plans to initially launch its non-admitted product with retail distribution by leveraging an existing network of relationships, but will eventually expand into wholesale distribution as well as to lower revenue bands and attachment points.
LEAN STAFFING MODEL
Landaverde said Euclid Cyber will be taking “a very streamlined” approach to staffing, with plans to add up to two additional underwriters this year.
Claims for the program will be handled through a third-party administrator via Spinnaker. Landaverde said the new MGA also plans to leverage vendor tools in its underwriting, with back- office support, including IT, HR and accounting, provided by Euclid Program Managers.
In terms of cross-selling with other MGAs that are part of the Euclid platform, Fearon said she expects those opportunities to develop “organically”.
Asked how Euclid Cyber plans to grow into a soft and competitive cyber market, Landaverde said that the MGA would be “bottom-line focused” and benefits from the support of the larger Euclid platform and the absence of outside investors that would otherwise drive top-line pressure.
“We're very focused on bottom-line profitability, being here in the long-term. And so with that, our growth goals are meaningful, but they make sense with respect to where the market is today.
“We're going to be looking to grow in a very selective way. We do know that there are opportunities out there in the market. There are companies that are looking to grow their insurance towers,” Landaverde commented.
‘VERY INTENTIONAL’ APPETITE
Landaverde described Euclid Cyber’s appetite as “very intentional” and said the MGA would target classes and coverages it views as “insurable” and that have established legal precedents, or what she referred to as “known” exposures.
Targeted industry classes include financial institutions, retailers and government contractors for cyber, and professional services firms, tech firms and telecoms for tech E&O.
Landaverde noted that the cyber market features many established players writing primary coverage, and that while Euclid Cyber will over time look to write at lower attachment points, it does not anticipate expanding into writing primary insurance.
“We think that we bring something very different to the table than the traditional cyber MGAs that have been in the market so far. We don't have the pressure of (outside) investors,” she explained. “We're focused on being very strategic, on growing our portfolio with an eye on profitability. We plan on building those relationships so we have long-term relationships with those clients,” she said, while adding that Euclid Cyber’s ability to entertain larger insureds is a differentiator.
Landaverde said that another advantage is that she and Fearon have strong backgrounds underwriting more complex risks.
“I think you really just need a multifaceted approach to underwriting. There's not just a singular way of looking at risk when you're talking about these large risk deals. I think that sets us apart in a big way.”
The Euclid Cyber co-managing principal also said that the MGA is committed to delivering fast response times to brokers, and that she and Fearon have final approval on every deal.
She also spoke about the benefits of being a part of the larger Euclid Program Managers ecosystem. “They have such a great track record … There was a quick alignment of views,” Landaverde explained.
View this article here: https://www.theinsurer.com/program-manager/news/euclid-cyber-launches-with-spinnaker-backing-to-target-1-billion-plus-revenue-2025-02-27/
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