Specialist Bermudian collateralized reinsurance and insurance-linked securities (ILS) investments start-up Sequant Re is set to take another investment in its holding company, Sequant Re Holdings Limited, from anchor backer Premier Diversified Holdings Inc. (PDH).
Premier Diversified Holdings Inc. (PDH) intends to acquire up to USD$316,000 worth of shares, at $2 per share in cash, and intends to hold the shares in Sequant Re for investment purposes only. Premier already holds approximately 33.04% (32.26% on a fully diluted basis) of the issued and outstanding common shares of Sequant Re Holdings Limited.
“As a primary shareholder behind SRHL, Premier continues to support this boutique reinsurance company as it continues to build out its book of business, reputation and its unique offering in the insurance-linked securities market under Guy Cloutier,” commented Premier CEO and SRHL director, Sanjeev Parsad. “We believe SRHL will begin to generate fee income in 2016 and offset our future funding requirements.”
Sequant Re underwrites fully collateralized reinsurance transactions, through the issuance of insurance-linked securities backed by third-party investor capital.
The firm hopes to make it easier for new investors to enter the sector and for experienced ILS investors to access new portfolios of reinsurance risk, by offering access to portfolios it has selected, underwritten and created, either on a shared or sole basis.
In this way Sequant Re will offer investors customisable portfolios designed to meet their risk and return requirements, as well as access to broadly diversified reinsurance portfolios, all backed by the issuance of ILS instruments.
Premier is a diversified holding company which began as a medical diagnostic device company. It invested in Sequant Re right at the start, seeing it as an attractive investment to gain exposure to the reinsurance sector.