Markel Corporation has announced that it intends to establish a new retrocessional insurance linked securities (“ILS”) fund platform in Bermuda, comprised of a reinsurance company, fund entity, and investment manager.
In a statement, Markel explained that it expects the new platform to allow Markel to expand on its current range of ILS capabilities. The platform will be overseen by Jed Rhoads and Andrew “Barney” Barnard, global reinsurance executives at Markel.
Markel said that it expected initial product offerings to include a property catastrophe retrocessional investment ahead of the 2020 renewal period. It added that it expected the fund to offer cedants a suite of property retrocession products with the ability to have coverage provided either on a collateralized basis, written by the new reinsurance company, or on a rated paper basis written by Markel's existing Class 4 Bermuda-based licensed insurance company, Markel Bermuda Limited, or a combination of both.
“Markel is tremendously optimistic about the future of the ILS market. Over time we expect this new platform to broaden Markel's capabilities and provide institutional investors access to further opportunities in insurance risk, complementing our existing Nephila and State National operations,” said Richard R. Whitt, co-chief executive officer at Markel. “The 2020 Retro Fund is expected to provide investors with access to property catastrophe retrocession exposure via a single-entry point and platform, and we expect it will additionally present a convenient and compelling offering to both our cedants and brokers.”
Learn more: www.markel.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].