Privately owned, London-headquartered, insurance and reinsurance brokerage Alwen Hough Johnson has officially launched its insurance-linked securities focused, capital markets broking unit, AHJ Capital Markets Limited today after receiving FCA authorisation.
AHJ Capital Markets, now fully authorised by the UK’s Financial Conduct Authority, will focus on providing AHJ brokerage clients with access to ILS type risk transfer and other capital market products. Initially, the firm says it will focus on providing clients reinsurance backed by insurance-linked securities (ILS), as well as financing risk using debt and equity capital.
AHJ Capital Markets will also work on developing risk solutions specific to the sectors in which the Alwen Hough Johnson brokerage operates.
AHJ Capital Markets will be based in London and is led by Martin Davies, who joined Alwen Hough Johnson in September from his previous role as CEO of Towers Watson Capital Markets Ltd. Prior to that, Davies worked at Gen Re, Sedgwick and Citibank.
This is not the first time Alwen Hough Johnson has looked to the capital markets and ILS products for its client base. The broker had a partnership with Tradition Re back in 2009, which sought to raise the awareness of the Lloyd’s market to instruments such as industry loss warranties (ILW’s).
As the popularity and appetite for utilising capital market backed risk transfer capacity grows, brokers will increasingly be called upon to offer instruments like ILW’s, ILS, catastrophe bonds and other forms of collateralised reinsurance structures. Alwen Hough Johnson now has the capabilities to offer such products to its clients, which will enable increased access to ILS to many London insurance market participants.