Cardinal Re Launch Takes Hiscox’s ILS Assets to More Than $600 Million

Kiskadee Investment Managers, Hiscox Re’s insurance linked securities (ILS) operation, has launched Cardinal Re Ltd., a Bermuda-domiciled special purpose insurer designed to transform collateralized insurance and reinsurance risk into a security more suited for capital market investors.

The launch of Cardinal Re takes Kiskadee Investment Managers’ assets under management to more than USD$600million.

Cardinal Re, wholly owned by Hiscox and managed by Kiskadee Investment Managers, is a market ready platform able to quickly create sidecars and managed accounts in a segregated cell, Hiscox said in a statement.

Registered under Bermuda’s Segregated Accounts Companies Act 2000, Cardinal Re launched its first external investor cell in July 2015, with the transformation of a portfolio of Hiscox insurance risk into a transaction supported by $55 million of external capital.

Cardinal Re adds additional flexibility to Hiscox’s use of alternative capacity for insurance or reinsurance risk, providing investors with market access to risk sourced within the Hiscox Group, the company said.

“The launch of Cardinal Re is the latest development in our Kiskadee offering and takes assets under management to more than $600 million, in only its second year of operation,” said Jeremy Pinchin, CEO Hiscox Re.

“Cardinal Re, with its nimble and flexible segregated cell structure, can respond quickly and is an effective way for completing transactional deals where speed to market is critical,” he added. “It offers additional opportunities for both investors and cedants alike to benefit from our growing Kiskadee family of insurance linked products, and reflects the growing confidence from investors to take both insurance and reinsurance risks.”

Source: Hiscox