Rent Shield Announces $120 Million Lloyd’s Placement for Investment Property Risk

November 4, 2003

Toronto-based Rent Shield Corp, a provider of pass-through risk specialty insurance and reinsurance products, announced that it has received a Binding Agreement from Tysers International Insurance and Reinsurance Brokers confirming completion of a $U.S.120 million underwriting placement with Lloyd’s.

The placement insures “property with a fair market value of US$120 Million which is currently being donated to various charitable organizations,” said the bulletin. It also noted that “Tysers & Co. was founded in 1820 and is the oldest independent continuous trading firm of Lloyd’s brokers.” Rent Shield said it expects to realize approximately US$3 million in gross premium revenue from the placement during the current quarter.

Commenting on the announcement, Stephen Stonhill, Chairman of Rent Shield, stated, “This underwriting is another innovative pass-through risk securitization placement designed, structured and sold by Rent Shield. The Company is quickly positioning itself to become a meaningful provider of specialty niche insurance and credit products throughout North America.”

Rent Shield’s bulletin also indicated that the company is “preparing to introduce its core pass-through risk product, RentShield(TM), a residential rental guarantee program to be offered to North America’s $300 billion residential real estate rental market. The Rent Shield product will be the first of its kind offered in North America which will provide securitization of residential rental income in North America.” The Company plans to introduce the program this month, aimed at “North America’s $300 billion residential real estate rental market.”

It intends to market the product “to a majority of landlords in North America, essentially taking the financial risk out of property management. It is estimated that there are over 38 million rental units in the United States and Canada.” The idea, which was first developed in Finland, is “to provide surety to residential property developers. It is already “being used as an extremely effective marketing tool in the United Kingdom for the buy-to-let market. It protects investments in the rental units by receiving a guaranteed income on a certain timeline. Rental guarantee will provide total peace of mind to landlords and tenants alike.”

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