Sequant Re, the recently launched Bermuda-based insurance-linked securities (ILS) and collateralized reinsurance company which aims to lower barriers to entry into the market for investors, has announced a senior hire and a relationship with an underwriting consultancy today.
Sequant Re has hired Lola Myshketa as an Executive Vice President, to lead the capital raising and business development activities for the firm. Myshketa, previously the Head of Asset Management at Bermuda Commercial Bank, brings 17 years of international experience in investments and capital markets to Sequant.
Sequant Re launched in December 2014 with a strategy involving leveraging insurance-linked securities (ILS) techniques alongside Bermuda’s unique segregated account reinsurance structure, in order to offer a flexible and efficient platform for the transfer and securitisation of insurance or reinsurance risks.
The business model is to ease access to risk for investors seeking to enter the ILS space and benefit from re/insurance linked returns, while also providing a robust underwriting platform that has access to an attractive book of business.
“We are extremely pleased to welcome Lola to the team,” commented Guy Cloutier, Founder and CEO of Sequant. “Lola’s experience in capital markets, her talent and energy will be great assets to Sequant Re. As a key member of the executive team, she will play an instrumental role in shaping the future of the Company.”
“I am delighted to have the opportunity to join Sequant Re’s operation,” added Ms. Myshketa. “Guy and David have outstanding reputations and an enviable roster of connections in the re/insurance, capital markets and financial modelling industries. I am eager to build on this impressive foundation, but more importantly, I am thrilled to be part of a business model that has investors’ interests at heart.”
Myshketa has significant expertise in areas such as strategy, business development and sales leadership. Her proven track record in raising capital for various alternative investment offerings, designing and executing the roll out of new products and opening new markets, while creating and implementing business structures and sales programmes that support a clear vision for business growth, will all add value for Sequant Re as it seeks to scale up.
Sequant Re also announced that it has established a relationship with an underwriting consultancy led by Vic Baillargeon, a former Head of Structured Reinsurance at Aspen Insurance Ltd., Bermuda. The exclusive arrangement will see Baillargeon work with the Sequant executive team in a Senior Underwriting Consultant role, assisting in developing underwriting strategies and guidelines as the company builds its reinsurance portfolios.
Cloutier commented on the arrangement; “Vic brings a great depth of expertise and experience to Sequant Re. We will benefit from Vic’s insight and experience as we build our diversified portfolio of reinsurance risks.”
“I am delighted to be partnering with the team in their unique approach to developing reinsurance portfolios” added Mr. Baillargeon. “There are tremendous opportunities in the reinsurance space for properly selected and modelled risks to be securitised and brought to capital market investors.”
An experience reinsurance underwriter, Baillargeon has over 35 years of insurance and reinsurance experience, including 10 years in Bermuda as Head of Structured Reinsurance for Aspen Insurance Ltd., where he built a portfolio of $576 million of Gross Written Premium.
Baillargeon has successfully underwritten across lines of business including property, casualty and specialty risks, and established a solid track record of underwriting profitability.
Before his move to Bermuda, Baillargeon was Senior Vice President of PMA Reinsurance Company, a Philadelphia based company, where he was responsible for a portfolio of $425 million in assumed reinsurance. Prior to that he was Vice President at CIGNA International, managing a portfolio of $160 million, before which he has held numerous broking and underwriting management roles.
Sequant Re said that Baillargeon’s “vast underwriting experience will be invaluable” as the firm seeks to develop a diversified reinsurance portfolio to match with its investors needs.
These two key announcements fit neatly into the Sequant Re model, with Myshketa’s hiring focusing on acquiring, building and developing relationships with investors, while the arrangement with Baillargeon will facilitate the underwriting of risk to match with investor capital.
The efficient business model, of giving capital market investors access to risk in an efficient manner and bringing new capital sources to the reinsurance market, leveraging the segregated accounts structure, should be very attractive to many investors and also to cedents looking for sources of efficient ILS risk capital.