Corporate
Florida State Board of Administration Invests $400M in ILS Funds Managed by Tangency Capital and Nephila Capital
•February 16, 2026
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Participants
Why It Matters
A major public pension is deepening its commitment to ILS, underscoring the asset class’s appeal for long‑term, risk‑adjusted returns and influencing market capacity. The allocation also highlights the growing role of alternative investments in public‑sector portfolios.
Key Takeaways
- •Florida pension adds $400M ILS allocation.
- •$200M to Tangency quota‑share reinsurance fund.
- •$200M to Nephila’s Navaura specialty lines vehicle.
- •Brings total pension ILS exposure near $2.4B.
- •Diversifies portfolio, targets stable returns amid soft premiums.
Pulse Analysis
The Florida State Board of Administration’s latest $400 million ILS commitment reflects a broader trend among large public pensions to seek alternative assets that deliver returns uncorrelated with traditional equity and bond markets. By allocating capital to both quota‑share reinsurance and specialty‑lines structures, the board aims to capture the diversified risk‑return profile of global catastrophe and underwriting exposures, which have historically provided attractive yields even when conventional markets falter.
Tangency Capital’s Select Market Access Fund offers a quota‑share reinsurance approach, granting investors proportional participation in a diversified pool of natural‑catastrophe risks. This model reduces concentration risk and aligns payouts with the underlying loss experience, delivering a smoother performance curve. For the Florida pension, the $200 million stake not only expands its reinsurance footprint but also leverages Tangency’s expertise in structuring efficient, transparent vehicles that can be scaled across the pension’s sizable capital base.
Nephila Capital’s Navaura Holdings targets specialty‑lines reinsurance, a segment that often commands higher margins due to its niche risk profiles. The $200 million infusion adds a third Nephila‑managed vehicle to the pension’s portfolio, complementing existing Arachne and Rubik holdings. By spreading exposure across multiple managers, structures, and lines of business, the pension mitigates manager‑specific risk while positioning itself to benefit from premium‑driven upside in specialty markets. Collectively, these allocations reinforce the pension’s strategy to harness ILS as a resilient, yield‑enhancing component of its long‑term investment mix.
Deal Summary
The Florida State Board of Administration allocated $200 million each to Tangency Capital’s Select Market Access Fund Ltd. and Nephila Capital’s Navaura Holdings Ltd., bringing its total ILS allocation to $400 million. The investment marks the first allocation to Tangency’s fund and expands the pension’s exposure to quota share and specialty line reinsurance strategies.
Article
Source: Artemis (ILS/cat bonds)
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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 these two specialist insurance-linked securities (ILS) investment managers may ultimately be the beneficiaries of new allocations from the Florida Retirement System Pension Plan, 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 the ILS manager itself was founded 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.
Florida State pension invests $200m in Tangency Q/S fund, $200m in Nephila specialty vehicle was published by: www.Artemis.bm
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