Risk Management Solutions has completed the expert modeling analysis in connection with the securities offering undertaken by Ibis Re Ltd., a special purpose reinsurance company domiciled in the Cayman Islands.
“The securities offering is intended to finance a separate reinsurance transaction providing $150 million of collateralized coverage against U.S. hurricane over three years for the New York-based insurer Assurant, Inc.,” said RMS.
“The trigger for the reinsurance arrangement is based on an index that references state-by-state personal lines industry losses for U.S. hurricane as reported by Property Claims Services. Within Florida, the index is further adjusted to account for the location of hurricane landfall.”
Peter Nakada, managing director of RiskMarkets, RMS’ dedicated insurance-linked securities (ILS) team, added: “In this market, simplicity and transparency are more than ever key requirements for investors. The use of landfall location in this deal illustrates how basis risk can be managed without a cost to transparency.”
Source: Risk Management Solutions – www.rms.com
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