Third-party reinsurance capital news

Insurance and reinsurance broking giant Aon is continuing to work with clients to help the industry replace lost capital following the letter of credit (LOC) fraud at insurtech Vesttoo, Eric Andersen, President of Aon plc said last week.

Vesttoo, the insurtech at the center of an international reinsurance letter of credit (LOC) fraud investigation, is trying to sell off assets of the firm as part of its plans to emerge from the scandal and trade forwards, but creditors are accused by the company of undermining these efforts in a display of brinkmanship.

This video features the final session of the day at our Artemis ILS Asia 2023 conference held in Singapore on July 13th 2023, a panel discussion with experienced insurance-linked securities (ILS) investment managers on the state of the market, in Asia Pacific and globally, as well as giving their ILS outlook.

MGIC Investment Corporation has successfully leveraged investor demand to upsize its latest sponsorship of mortgage insurance-linked securities (ILS), securing $330.2 million of reinsurance for its Mortgage Guaranty Insurance Corporation unit through the Home Re 2023-1 Ltd. issuance.

The insurance-linked securities (ILS) market and alternative sources of reinsurance capital are key providers of protection to Florida’s insurance sector and investor appetite for the risk will continue, rating agency Moody’s has said.

Vesttoo has responded to the Official Committee of Unsecured Creditors calls for its liquidation to be accelerated, stating that it has produced “a significant business plan” and that the creditors should give the insurtech the time to deliver what it believes could be a “value-maximizing transaction.”

The Official Committee of Unsecured Creditors in the Vesttoo bankruptcy case objects strongly to the insurtech’s plans to attempt to trade forward, calling these efforts a “wasteful pursuit” that is burning money that could be returned to those harmed by the extensive letter of credit (LOC) in reinsurance fraud.

Specialty player R&Q announced an agreement to sell its Accredited program management business to private equity investor Onex on Friday, a move that will see R&Q refocus on its legacy specialism, with its Gibson Re collateralised sidecar vehicle expected to play an even more core role going forwards.

As the Chapter 11 bankruptcy case of beleaguered insurtech Vesttoo continues, the latest is that insurance and reinsurance broking giant Aon has agreed that the Committee of Unsecured Creditors can conduct some legal discovery on its entities, including White Rock.

While reinsurance and insurance-linked securities (ILS) continues to see a rotation out of certain investors, given macro factors and concerns over volatility, at the same time there is a new crop of investors rotating in that may better understand the fundamentals of the space.