Neon Sponsors 2nd ILS Transaction via UK Transformer Vehicle NCM Re

January 8, 2019

Neon announced it successfully has raised third party capital to support its second insurance linked securities (ILS) transaction through its UK-based transformer vehicle, NCM Re.

This marks the first reinsurance renewal under the UK’s nascent regulatory regime for alternative capital investment in the reinsurance sector, said Neon.

The transaction, which launched on Jan. 1, 2019, is a $77 million collateralized quota share of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.

“We are delighted with the continued support from existing investors and that new investors enabled us to increase the size of the transaction this year,” said Mark Gibson, Alternative Capital director at Neon. “This is quite an achievement given ILS market conditions and we are pleased to have sponsored the first renewal transaction under the UK regime, facilitated by early engagement with the Prudential Regulation Authority.”

NCM Re was the first UK-domiciled protected cell company to utilize ILS regulations passed in late 2017.

Source: Neon

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