The Panthera Re Limited Bermuda registered special purpose insurance vehicle has been revealed as belonging to TigerRisk Capital Markets & Advisory (TCMA) and will be used to help its clients access the capital markets and insurance-linked securities (ILS) investors.
TigerRisk Capital Markets & Advisory (TCMA), the capital markets and investment banking arm of broking and advisory specialists TigerRisk Partners LLC, has formed Panthera Re to facilitate capital market access for the firms insurance and reinsurance clients.
Panthera Re was actually established much earlier this year in January and issued its first $100 million tranche of private catastrophe bond style notes in February, which we covered at the time here.
TCMA said today that Panthera Re will enable its clients to access third-party capital investors “in an efficient manner.”
With the ability to transform a wide variety of risks and contract types into insurance-linked notes, making them accessible and tradeable to institutional investors, akin to a catastrophe bond.
Panthera Re also features documentation that has been standardised, like the other private cat bond platforms, which will help to streamline the process, but TCMA notes that Panthera Re can also be used for more customized transactions as well.
Given third-party capital from institutional investors deployed into insurance and reinsurance is now approaching USD $100 billion, TCMA notes the increasing need for efficient risk transfer.
TCMA’s Global Head of ILS, Philipp Kusche, explained, “Structures continue to evolve in the insurance-linked securities market and investors continue to become more sophisticated in the space. Against this backdrop, the need to match risk with the optimal capital and consider different transaction forms, including securities placements, becomes critically important. Panthera Re advances this standard and creates a platform which allows our clients to provide more liquid tradeable securities to capital market investors in a cost-efficient manner.”
TigerRisk’s President, Tony Ursano, added, “TCMA has built a substantial and leading ILS franchise over the last few years, originating, structuring, placing and trading a variety of innovative insurance-linked securities. We are committed to developing new structures and new risks which can be efficiently placed into the ILS market. Panthera Re is another tool which we can utilize for our clients, providing them with incremental cost-effective capacity utilizing the growing ILS market and institutional investor base.”
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