Hybrid fronting specialist MS Transverse has stated that Vesttoo only participates directly on one program with MS Transverse and that this business is fully collateralized with cash.
The fronting company is the first to issue a formal statement about the alleged issues with letters of credit (LOC) used as collateral for transactions facilitated by Vesttoo.
David Paulson, President of MS Transverse stated, “Vesttoo participates directly on only one program with MS Transverse. The Vestoo participation began in the first quarter of 2023. The business written on MS Transverse paper is collateralized with cash. MS Transverse will continue to monitor and take all needed steps to ensure smooth operation of the program.
“To our full knowledge, all other exposure to Vesttoo would be indirect through other reinsurance capital providers having arrangements with the company. Our current belief is that impact to MS Transverse from any impairments to LOC collateral should be immaterial to our business and our investigation is ongoing.
“MS Transverse recognizes that financial security is integral to our business and one of the key roles we strive to protect for the program market.
“As the only hybrid fronting carrier backed by a global P&C leader, we will continue to remain a stable force supporting our partners and the market.”
Also read:
July 20th – Vesttoo: Collateral damage.
July 19th – Vesttoo: New report claims significant amount of forged LOCs. The question is how?
July 18th – Vesttoo faces fraudulent collateral claim. Confirms investigation, exit of some leaders.
View all of our Artemis Live video interviews and subscribe to our podcast.
All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.
Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
