Brit reveals new ILS platform for UK market

Specialty re/insurer Brit has unveiled a new multi-arrangement insurance special purpose vehicle to write general collateralised reinsurance for multiple cedants via Brit’s distribution network in the London market.

Sussex Capital UK will initially focus on property catastrophe coverage, with capacity provided by Sussex Capital, Brit’s Bermuda-domiciled ILS fund platform.

It is said to be the first transformer vehicle to be given permission by the Prudential Regulation Authority (PRA) under the UK’s new insurance-linked securities (ILS) regime.

A UK government cross-party committee has approved the Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulation 2017 in November 2017, which are aimed at establishing London as a hub for insurance-linked securities.

The regulations introduce a regulatory and tax framework for ILS business in the UK, which would enable re/insurers to transfer risk to the capital markets.

Matthew Wilson, CEO of Brit, commented: “I am both excited and proud to announce the launch of Sussex Capital UK, a landmark development in the emerging ILS market here in the UK. Sussex Capital UK further enhances Brit’s client and broker proposition and positions Brit extremely well to support growth in the UK’s ILS market as demand evolves over time.”

Mark Allan, Brit CFO, added: “Sussex Capital UK extends Brit’s ILS capability into the UK, further enhancing optionality and access to property catastrophe risk for our investors over the long term. We are excited to be at the forefront in supporting the London Market’s ILS ambitions and would like to thank the UK regulators for their commitment and responsiveness through the application process.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

California wildfire property reconstruction may cost $8.6bn

Most insurers on track in Brexit preparations: AM Best

State Farm, Farmers Insurance most exposed to California wildfires

Sompo benefits from lower nat cats overseas in 6M results

California wildfires earnings event for re/insurers: S&P

Hannover Re, MS&AD-backed finleap raises €41.5m from Ping An

Don't miss our insurtech email newsletter - sign up today