ILS & cat bond facilitator Kane set for acquisition by Artex: Reports

by Artemis on February 12, 2016

According to reports, which seem to confirm a rumour that has been doing the rounds of the ILS and reinsurance convergence space for some weeks, ILS and captive management firm Kane Group is set to be sold to Artex Risk Solutions.

The fact that global independent insurance and reinsurance manager Kane could be for sale came to light as a rumour a number of weeks ago now.

Kane, while predominantly a business focused on captive management given the much greater size of that market, is one of the leading insurance-linked securities (ILS) management, administration and facilitation shops in the market now.

Aside from simply registering, managing and administrating ILS, catastrophe bond, captive and other reinsurance structures, Kane also has a private ILS or catastrophe bond platform and is known for providing vehicles and services to cat bond lite sponsors and ILS fund’s looking to transact in a liquid, securitised format.

If you look through the disclosed portfolios of ILS mutual fund managers, such as Stone Ridge, you cannot help but notice the wide range of Kane segregated account vehicles used to facilitate structuring, transformation and investing in collateralised reinsurance quota shares and other private ILS contracts.

When the rumours about Kane’s future started it was mooted that private equity investors were looking for an exit, as the insurance management and administration business is not one that provides the multiples they would typically be looking for.

Now a buyer is said to have been found, with reports saying that it is set to be Artex Risk Solutions, the captive and insurance management business of broking group AJ Gallagher, which is clearly seeking to expand.

By adding Kane and its ILS services and platforms, Artex Risk Solutions can take an influential role in the reinsurance convergence and ILS space straight away.

It’s likely clients will notice little change, as the Kane team will largely transition we’re told.

We’ll follow-up if/when the acquisition of Kane by Artex Risk Solutions is confirmed.

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