Hedge fund strategy reinsurer Till Capital writes first reinsurance policy

by Artemis on February 17, 2015

Bermuda domiciled hedge fund style reinsurance and hybrid investment firm Till Capital Ltd. has announced that its reinsurer entity Resource Re Ltd. has entered into its first reinsurance policy, helped by the Multi-Strat Re platform.

The details of the reinsurance policy are as follows. Arranged through Multi-Strat Re Ltd., Resource Re Ltd participates in the policy on a pro-rata basis, which provides it with $5.05 million of net premium, with a claim liability cap of USD $6.49 million.

Till Capital said that the policy meets the firm’s reinsurance strategy, which is focused on developing a portfolio of property and casualty and liability risks with above average frequency, low severity claim risks with capped liabilities.

“We are pleased to have signed our first policy which represents a critical milestone for the Company,” commented William M. Sheriff, Chairman and CEO of Till Capital. “We continue to work on additional policies noting all premiums will be managed within our current investment strategy.”

Till Capital retained MultiStrat Re to provide it with underwriting services and assist in the firm’s growth. It says that as the barriers to entry can be a factor that limits access to the reinsurance sector, by working within the MultiStrat Re platform, Till Capital gains entry to the reinsurance market at an earlier stage with less upfront capital while providing the opportunity to grow its reinsurance business over time.

Till Capital emerged out of the coming together of hedge fund strategy reinsurance firm Resource Holdings, resource royalties focused Americas Bullion Royalty Corp. and Bill Lupien’s hedge fund Kudu Partners L.P.

The resulting firm has been set up and structured using a Bermuda Class 3A reinsurer, named Resource Re Ltd., in order to produce underwriting profits while seeking to outperform on the asset management side of the business as well.

As part of the Multi-Strat Re platform Till Capital gains access to a pro-rate share of reinsurance policy premiums written through Multi-Strat Re that match its risk tolerance levels, which it can then put to work and manage as assets in its investment strategy.

The Multi-Strat Re platform is designed to make it easier for asset managers and hedge fund managers to enter the reinsurance sector, by lowering barriers to entry and minimising the start-up capital required.

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