Two former AXA XL executives have entered the market and launched a new insurance-linked securities (ILS) vehicle in Guernsey to connect alternative sources of reinsurance capital with contingency risk classes.
Former AXA XL executive Jonathan Beck and underwriter Richard Spurrier have launched ANT Insure, which is described as a Special Purpose ILS vehicle that will focus on underwritten contingency risks and providing investors access to the returns generated by them.
ANT Insure has specifically been established to connect risks in market segments where capacity is currently lacking with insurance-linked securities (ILS) type investors.
In the first instance, ANT Insure will look to connect alternative capital sources with the returns of underwritten business with a primary focus on Sports Contractual Bonus, Prize Indemnity and Loss of Revenue risks.
Beck was the Executive Chairman of AXA XL Services and XL Insurance Guernsey Limited and as a result responsible for setting up the first AXA ILS vehicle in Guernsey.
Beck worked for AXA XL from 2014, before which he worked at CNA Hardy, QBE and Hiscox in a career spanning back to 1999.
Spurrier was most recently a Specialty Risks Underwriter for XL Insurance Guernsey Limited, focused on Kidnap & Ransom and Fine Art risks. Before that, he worked for Artex (now part of Arthur J Gallagher) in a Captive Market focused team supporting Hiscox Crisis Management.
Spurrier also has broad experience in structuring Alternative Capital Vehicles for a range of market leading firms.
Beck commented on the launch of the new venture, “Now is a prime time for ANT to enter the market due to the flux we are seeing. Some markets are struggling with poor risk selection, overweight on expense, cyber or COVID losses or a combination of all four.
“We have taken a fresh look at the product and pricing, so together with a clean balance sheet and the exceptional support of our reinsurance and alternative capital providers we aim to take advantage of current market conditions.”
The ANT Insure Cell is already approved by regulators and forms part of the Marsh owned protect cell vehicle Isosceles PCC Limited.
The collateral underpinning the ANT Insure cell will be all alternative capital, from typical ILS investor sources.
The ANT Insure cell will offer investors an interesting way to gain access to diversifying risk exposures, through a structure managed and underwritten by experts in their fields.
ANT Insure will provide both insurance and reinsurance for the covered business lines, with limits available up to GBP £10m.
Contingency risks of this kind, such as prize indemnity, sports bonus and loss of revenue are areas of insurance that some ILS markets have already dabbled, but this is the first dedicated vehicle offering investors access to those types of risk related returns we’ve seen.
In addition to the ILS and alternative reinsurance capital focused ANT Insure, the pair have also launched another Specialty Insurance Cell, named ANT Exceptional Risks, which will have a focus on both land-based and maritime Kidnap and Ransom, Fine Art, Jewellery and Classic Car risks, subject to regulatory approval.
ANT Exceptional Risks currently going through thee regulatory process with the Guernsey Financial Services Commission and will form a Cell of protected cell vehicle Robus Risk PCC Limited, owned by the Ardonagh Group.