capital markets

At a Vesttoo Chapter 11 bankruptcy case hearing, counsel for the official creditor committee said that in working to identify and trace funds remaining from reinsurance transactions implicated in the letter of credit (LOC) fraud, these investigations, which are ongoing, suggest funds were drawn from debtor structures and co-mingled, then used to pay company expenses.

Broking giant Aon has said today that it anticipates an “influx” of capital to the parametric risk transfer space in 2024, from traditional insurance, reinsurance and ILS fund sources.

Over the course of full-year 2023, White Mountains has reported that its investment into the Outrigger Re collateralized reinsurance sidecar that supports its re/insurer subsidiary Ark, generated the company $69 million in pre-tax income.

The creditors in the Chapter 11 bankruptcy case of insurtech Vesttoo are now trying mediation out, as a way to solve the sticking point over the consolidation of the estate, versus honouring the segregation of cell structures used for reinsurance transactions affected by fraudulent letters of credit (LOCs).

Hannover Re placed its K-Cessions quota share sidecar at US $757 million in size for 2024, shrinking the structure by 9% over the prior year. In an interview, Henning Ludolphs explained that despite some changes, the company has sufficient retrocession to take advantage of the hard reinsurance market environment this year.

Artex Capital Solutions, the specialist unit of Artex Risk Solutions that creates and manages insurance-linked securities (ILS) and related structures for matching risk with capital, has appointed Christopher Wilson as its SVP Advisory and Head of Underwriting, based in Bermuda.

International specialty insurance and reinsurance group Chaucer has responded robustly to objections made by other creditors after its recent entry to the Vesttoo bankruptcy case, saying that the proposed bankruptcy plan has numerous issues and is “uncomfirmable.”

There is just one week until our upcoming insurance-linked securities (ILS) conference, ILS NYC 2024, which is being held in New York City on February 9th 2024. Spaces for the event are very low, so please register asap if you want to join us.

Aon established a $197 million reserve for legal settlement expenses related to the letter of credit (LOC) fraud at insurtech Vesttoo as an attempt to strategically draw a line under the issue, Eric Andersen, President of Aon plc said today, also highlighting that meaningful recoveries are expected to be made to reduce the overall cost […]

Broking giant Aon has recognised a significant legal settlement expense reserve amounting to $197 million related to the Vesttoo fraud scandal in its fourth-quarter of 2023 results.