MultiStrat completes $205m casualty ILS transaction, its largest to-date

MultiStrat, the specialist underwriter and reinsurance investment facilitator, has completed its largest casualty insurance-linked securities (ILS) transaction to-date, a $205 million casualty ILS deal that it worked alongside investor Vida Capital to complete.

The landmark casualty linked securities (CLS) transaction provides reinsurance coverage for certain prospective and retrospective general liability risks.

A protected cell of MultiStrat’s affiliated insurer Garden Insurance Company of Vermont underwrote the transaction.

The firm’s capital advisory team, MultiStrat Advisors Inc., and its affiliate, the Annapolis Consulting Group, Inc., provided instrumental support to the underwriting team in completing this casualty ILS transaction.

Vida Capital Inc., an alternative investment manager with around $4.5 billion under management and ties to the ILS sector through its life and longevity funds, as well as its joint-venture partnership of ILS asset manager Merion Square Capital LLC, completed the investment of this casualty ILS arrangement in a reinsurance structure and also designed the investment strategy for the associated reinsurance trust account.

Bob Forness, CEO of MultiStrat Group, commented on the landmark arrangement, “MultiStrat’s largest casualty ILS transaction to date was a real milestone. We were able to combine retrospective and prospective exposures into a single casualty ILS structure designed to suit both the reinsured’s unique requirements and Vida Capital’s risk appetite. This deal demonstrates MultiStrat’s leading and growing expertise in placing broader casualty reinsurance risks in insurance linked security vehicles.”

William Tice, Senior Managing Director of Vida Capital, also said, “We are very excited to have worked with MultiStrat on this transaction. The deal highlights Vida Capital’s ability to provide creative and nimble solutions in support of bespoke investment opportunities.”

RFIB (Bermuda) Ltd. provided reinsurance broker services to get the transaction to market.

MultiStrat’s capital advisory unit MultiStrat Advisors works alongside its primary distribution partner and registered Broker Dealer StormHarbour Securities to arrange these investments in select reinsurance transactions.

MultiStrat has now underwritten and structured numerous casualty ILS transactions for investors, helping them to access the returns of insurance and reinsurance classes from workers compensation, to general liability, employers and professional lines.

With now hundreds of millions of casualty reinsurance premiums securitized and made investable in these casualty ILS deals, MultiStrat is helping investors broaden their diversification and access new sources of insurance-linked returns.

Also read:

– Diversification needs will drive casualty ILS growth: MultiStrat Advisors CEO.

– Casualty linked securities gain traction for MultiStrat.

– Future of casualty linked securities is “very bright,” Robinson, CEO, MultiStrat Advisors.

– Hudson Structured & MultiStrat complete novel casualty ILS transaction.