Global specialty insurance and reinsurance group Canopius has expanded the utility and importance of its Bermuda reinsurance and insurance-linked securities (ILS) platform, reclassifying its reinsurer Canopius Re to have a Class 4 Reinsurer licence.
Canopius’s Bermuda reinsurance and ILS operations consist of: Canopius Re Ltd (now a Class 4 Reinsurer); Canopius Underwriting Bermuda Limited (a coverholder underwriting on behalf of Lloyd’s Syndicate 4444); Canopius ILS Ltd. (an insurance agent structuring and raising capital for property catastrophe ILS transactions, largely in collateralized reinsurance or quota share sidecar form); and Multi-Strat Re Ltd. and MultiStrat Advisors Ltd. (an affiliate that specialises in prospective and retrospective casualty reinsurance for asset managers and ILS investors).
Canopius announced that Canopius Reinsurance Limited (Canopius Re) was granted a Class 4 Reinsurer licence by the Bermuda Monetary Authority (BMA).
The upgrade to a Class 4 licence is expected to “significantly extend Canopius Re’s scope,” the company said.
Canopius Re will be able to increase its gross written premiums and underwrite more third-party risks, with its new Class 4 status.
“This marks a reorientation of the reinsurer, which will initially be focused on third-party property and casualty business, reflecting the opportunities created by the improving rating environment,” Canopius explained.
Charles Craigs, CEO, Canopius Re, commented on the news, “I am extremely pleased to announce that Canopius Re has now been approved as a Class 4 Reinsurer. All Canopius Bermuda entities will benefit from Canopius Re’s expanding underwriting appetite and growing group commitment to the Bermuda marketplace.
“I would like to thank our team for their many efforts, and the BMA for recognising that and enabling us to ideally position the business to capitalise on the considerable opportunities that exist.”
This presumably means Canopius will be able to underwrite more business for third-party investors via its Canopius ILS Ltd. unit as well, with Canopius Re able to front reinsurance transactions for investors backing ILS structures it operates.
Canopius has an opportunity to capitalise on its underwriting track-record and make use of the Bermuda platform to structure risks for ILS investors.