BMS Capital Advisory launches as ILS focused broker-dealer

by Artemis on July 31, 2014

BMS Capital Advisory has been launched today by Minova Insurance Holdings, as the BMS insurance and reinsurance brokerage group gears up to target the insurance-linked securities (ILS) sector with its own broker-dealer and capital markets facilitator.

BMS Capital Advisory, an affiliate of the U.S. reinsurance brokerage arm of BMS Group, BMS Intermediaries, now has its SEC license to act as a registered broker-dealer and is a member of both the Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC).

That means its ready for business, which will include advising on and facilitating insurance-linked securities (ILS) offerings as well as work in the mergers & acquisitions space. Through the combined offering of BMS Capital Advisory and BMS Intermediaries the firm aims to enable clients to achieve strategic goals through reinsurance transactions, access to the capital markets or M&A advisory services.

CEO of BMS Capital Advisory, Rom Braga, commented on the launch; “BMS Capital Advisory will increase the Group’s operational flexibility, as we seek to deliver the most effectively-priced capital and integrated advice to our clients and prospects.”

BMS is the latest broker to now have a unit which can bring clients a capital agnostic approach to their reinsurance renewals, with the ability to offer programmes featuring capital market products as well as traditional reinsurance. With the licenses to structure, offer and book-run ILS and catastrophe bonds, BMS will no doubt be looking to become active in the space and create deal flow as soon as it can.

“We believe our focused approach to servicing a differentiated client base will allow us to work with capital markets participants to create, facilitate and execute select corporate finance engagements and effective solutions to a new class of ILS sponsors,” continued Braga.

BMS has a large client base, many of whom may not yet have been formally introduced to ILS as a possible component of their reinsurance programmes. With BMS now able to offer this service as well, it could help to bring some new sponsors to market and the firm may find the most success with small to mid-sized sponsors.

Braga told us previously that private ILS transactional work was likely an area of focus as the BMS client-base would suit these streamlined deal terms. The other goal of this launch is to be able to bring all forms of capacity, be they traditional or fully-collateralized, to the BMS client-base in whatever structure best suits the clients needs.

Andrew Bustillo, CEO of BMS Intermediaries, added; “From broking and advisory services to analytics, claims handling, capital advisory and beyond, we strive to become an extension of our client’s business, advocating their best interests to help them succeed.”

In the current competitive and soft reinsurance market environment it is essential that brokers are able to offer this full service approach. With capital now providing options, due to the different risk appetites and costs associated with different forms of traditional and non-traditional capacity, the broker-client is able to take advantage of the choice available to it and the broker must have the capabilities to offer this capital-source and structure agnostic approach to broking.

Bustillo added; “Having achieved this milestone, we are now able to provide risk management and advisory services across a broad spectrum of the capital markets. We believe in providing integrated solutions to our clients within a dynamic reinsurance market place. Alongside our broker force, we are now ready to deliver.”

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