Elementum Advisors, an independent insurance-linked securities (ILS) and reinsurance-linked investment manager has registered a new SPI in Bermuda, called Elementum Re Ltd., as it further enhances its platform for writing collateralized reinsurance.
Elementum Advisors has always had a focus on instruments such as catastrophe bonds, collateralized reinsurance, industry loss warranties and catastrophe derivatives, but now sees an increasing opportunity to be able to write collateralized reinsurance contracts with its own underwriting vehicle.
Elementum Re Ltd., a Bermuda-domiciled special purpose insurer, was registered in November.
The ability to underwrite collateralized reinsurance as and when opportunities appear is also growing in importance, as the rates and returns of collateralized reinsurance can be much higher than those gained from investing in assets such as cat bonds. Many ILS investment managers are putting an increasing focus on writing collateralized reinsurance directly with cedents as they grow their offerings.
Elementum Advisors Founding Principal Tony Rettino told Artemis; “The SPI, which will be called Elementum Re, will be utilized to facilitate certain collateralized reinsurance transactions and adds flexibility to our platform.”
It’s likely that Elementum will put the new SPI to good use writing collateralized reinsurance contracts at the January renewals.