Third-party reinsurance capital news

We’re told that the sum total of assets and so value that could be distributed in Vesttoo’s pending liquidation under the bankruptcy proceedings, is estimated to be below $25 million, which suggests creditors that lost significant value due to the reinsurance letter of credit (LOC) fraud are likely to be left unsatisfied, so may look […]

Aspen Capital Markets, the third-party and alternative reinsurance capital management unit of global re/insurer Aspen, has raised new funds for its third-party capital and insurance-linked securities (ILS) vehicles, taking total assets under management to $1.5 billion at the end of September 2023.

The financial strength ratings of fronting specialist Clear Blue Insurance Insurance Group have been removed from negative watch by AM Best, but the rating agency notes that some uncertainty remains, due to the impacts and effects of the letter of credit (LOC) fraud instigated by employees of insurtech Vesttoo.

The global reinsurance market now appears to have returned to a pre-soft market state of providing capital protection, rather than earnings protection, Fitch Ratings has said.

RenaissanceRe, the Bermuda based reinsurance and third-party capital management specialist, is working to bring investors in the AlphaCat Managers offering into its Capital Partners products, in the wake of the completion of the firms acquisition of Validus from AIG.

R&Q Insurance Holdings Ltd., the specialty player that is soon to return to its original legacy insurance and reinsurance focus, is already evaluating opportunities to launch a second collateralised sidecar vehicle, while the fee income earned from its first legacy sidecar Gibson Re rose through the first-half of this year.

Porch Group, the software driven financial services group with a homeowners insurance arm that was impacted after a letter of credit (LOC) backing a reinsurance deal it had entered into with insurtech Vesttoo was found to be fraudulent, is intending to pursue damages vigorously and not just against Vesttoo, it seems.

There are now only three months left to go until our next insurance-linked securities (ILS) conference. ILS NYC 2024 will be held in New York City on February 9th 2024, with around 400 attendees from the ILS community expected to come together for a day of thought-leadership, discussion and valuable networking.

Vesttoo, the insurtech at the centre of an international reinsurance letter of credit (LOC) fraud investigation, is set to remain in Chapter 11 bankruptcy, after the court denied a motion from the US Trustee to convert the case to Chapter 7 so a liquidation could be accelerated.

During the third-quarter of 2023, US headquartered insurance holding company W. R. Berkley Corporation continued to expand the subject business funded by its Lifson Re collateralized reinsurance sidecar vehicle, ceding additional premium to the structure.