Insurance-linked securities fund administrator launched by Horseshoe and ISIS

by Artemis on November 23, 2011

Horseshoe Group, an independent insurance manager with a focus on the insurance-linked securities (ILS) market, and ISIS Fund Services, a hedge fund administration services company, have joined forces to launch a new insurance-linked securities fund administrator. The joint-venture, ILS Fund Services Ltd., is a Bermuda exempted company operating as a licensed fund administrator dedicated to funds investing in ILS.

ILS Fund Services Ltd. will offer all the services that are required to administer an ILS fund, including (but not limited to); prelaunch advisory services, portfolio valuation services specific to insurance-linked securities, fund accounting and investor services, financial statement preparation and audit coordination and registered office and corporate secretarial services.

The joint-venture brings together the skills of both parties making this a very strong offering. Horseshoe Group have an impressive track record in insurance-linked instruments and structures such as catastrophe bonds, sidecars and collateralized reinsurance and say this will allow them to deliver superior valuation services to the new ventures clients. Meanwhile ISIS Fund Services will bring their extensive experience in hedge fund administration, accounting and investor services to the ILS market.

The two parties say that they saw an opportunity to combine their respective skill sets to create a focused offering for the ILS investment market and with this new venture aim to become the administrator of choice for ILS funds.

Andre Perez, CEO of Horseshoe Group, noted that, “This idea of creating a joint-venture with a fund administrator has been on my mind for a while. We have found in ISIS Fund Services Ltd. the ideal partner who, like Horseshoe, is client-focused and prides itself on  delivering best in class services. Having looked at other fund administrators out there that are administrating ILS funds, most of them are pretty good at fund administration but have very little insurance expertise, let alone insurance valuation expertise. While the valuation of catastrophe bonds is relatively easy, the valuation of collateralized reinsurance is much more complex and requires insurance underwriting as well as actuarial expertise. Too many fund administrators rely on the ILS fund managers for valuation rather than having the capability to evaluate whether the valuation makes sense. From the perspective of investors in ILS funds, they will gain more comfort knowing that a fund administrator, such as ILS Fund Services Ltd., is active, knowledgeable and has the necessary skills in insurance asset valuation. This is where ILS Fund Services Ltd. will become a clear leader.”

Ede Conyers, CEO of ISIS Fund Services Ltd, added, “ISIS Fund Services and Horseshoe Group, combining their respective expertise and robust service offerings to form ILS Fund Services Ltd., will undoubtedly provide the Company with unique advantages in the ILS space. By combining our talents and resources, the Company will be able to offer seamless, comprehensive fund administration and valuation services to ILS funds at competitive rates. We are very excited to work with Horseshoe Group on this joint-venture. ISIS Fund Services has been looking to expand its product offering to ILS funds and we are delighted to be associated with a leading provider of management and transforming services to the ILS market like the Horseshoe Group.”

The combined experience and range of skills that this new joint-venture will offer to the market is sure to make it a strong draw for ILS funds seeking these administration services. It’s also further evidence of Bermuda’s strong and growing position in the ILS market.

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