Artex, the captive, alternative risk transfer, insurance-linked securities (ILS) facilitation and capital solutions subsidiary of Gallagher, is set to rebrand all of its cell facilities and transformer offering as Artex Axcell, as it seeks to unify the brand proposition across these important market-facing services.
Artex is already one of the largest managers of global cell facilities, which include protected cells and segregated cells of corporate structures domiciled in financial hubs across the world, including key insurance, reinsurance and ILS domiciles such as Bermuda, the Cayman Islands, Guernsey, and the United States.
The company announced today that it will be transitioning all of its cell facility names to Artex Axcell, over the coming months, as it looks to bring its clients more efficiency and higher levels of service.
Artex believes that clients want an alternative risk solution that “demands less time, investment and resources” so is responding to unify the brand proposition and leverage efficiencies where it can.
“The creation of Artex Axcell is the result of a rationalization effort that will be phased across jurisdictions and will drive a consistent global approach,” said Peter Mullen, Global CEO, Artex. “The new cell facility name is designed to highlight our best-in-class offering and build upon the strength and reputation of the Artex brand to entities across the US, Cayman, Bermuda and Guernsey.”
Artex also manages ILS and catastrophe bond structures in other emerging domiciles, such as Singapore, Hong Kong and the UK.
Artex notes that cell facilities can be used for a range of risk management and transfer needs, including to gain greater insurance, reinsurance and capital market access, to provide clients with more flexibility in their coverage, to fill gaps in commercial insurance policies, in order to create new revenue streams, as an alternative structure to an owned captive, and as a captive exit strategy.
The company said that Artex Axcell represents a united, global approach for clients and has been derived from the words ‘accelerate’ and ‘cell’.
Peter Mullen told Artemis that over-time Artex will also be renaming its corporate structures through which cell offerings are made to align with the new Artex Axcell branding.
One example of this will be that the well-known Artex (SAC) Limited structure, which houses numerous private cat bonds and other ILS or collateralized reinsurance arrangements where Artex is the insurance manager, will eventually become Artex Axcell Re (Bermuda) Ltd., and at that time all deal documents going forward will also be in the new name.
Mullen also told us that Artex intends to set up a new facility in Vermont that will also trade under the Artex Axcell brand, providing an onshore US alternative cell structure.
The company explained that, “For organizations looking to lower total cost of risk and take more control than the traditional insurance market affords, Artex Axcell creatively brings a more efficient risk transfer vehicle with a lower investment of time, money and resources.
“For capital market investors seeking a transformer structure, Artex Axcell is the market leader to advise, facilitate and execute these transactions quickly and effectively.”
Cell structures play a vital role in the insurance-linked securities (ILS) market, not least as structures to house collateralized reinsurance arrangements for ILS fund managers and their cedent and investor clients.
Cell structures can also house private catastrophe bond arrangements and serve as the structure used to ensure effective and secure separation of liabilities and/or assets within multi-transaction ILS vehicles.