Liberty Mutual strikes $278m ILS transaction

Bermuda domiciled Limestone Re has issued $278 million of notes to investors in a private placement transaction that provides collateralised reinsurance for Liberty Mutual’s US property catastrophe programme, as well as US homeowners and global property reinsurance risks.

"Reinsurance through the Limestone Re platform forms an integral component of Liberty Mutual’s long-term strategy for accessing third-party capital,” said James Slaughter, senior vice president and chief underwriting officer of Liberty Mutual’s Global Risk Solutions strategic business unit.

“Liberty Mutual is able to leverage our global distribution platform to provide, through reinsurance with the Limestone Re platform, insurance-linked securities (ILS) investors diversified pools of risk while concurrently bringing investors as close as possible to the underlying insurance risks. This latest transaction brings the total Limestone reinsurance collateralized capacity placed with ILS investors to nearly $700 million, demonstrating our commitment to the ILS market,” Slaughter noted.

Investors positively responded to the Limestone Re offering, according to Matthew Moore, president, Liberty Specialty Markets. “We’re pleased with the overwhelmingly positive market reception and look to continue to broaden our partnerships with ILS investors through future transactions,” Moore added.

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