Vesttoo renews $120m+ casualty quota share for Lloyd’s syndicate

Alternative risk transfer and insurance-linked investment platform  Vesttoo has completed a renewal of quota share reinsurance cover for a Lloyd’s of London syndicate, providing more than $120 million in capacity, in a transaction brokered by Howden Tiger.

The renewal provides multi-line cover for a portfolio of long-tail, North American treaty reinsurance.

Vesttoo said the transaction highlights continued global demand for new investment capital in the reinsurance industry “to bridge the insurance and capital markets”.

A recent Risk Capital Report by Vesttoo showed that the market for insurance-linked securities is set to jump 11 percent by 2025 to an estimated $120 billion, driven by global demand for uncorrelated, low-volatility assets and lack of capacity in the traditional reinsurance industry. This projected growth is expected to be centered on non-catastrophe markets, including low volatility property & casualty (P&C), specialty and life lines of business.

“This transaction highlights what Vesttoo brings to the market – a new bridge between the insurance and the capital markets,” said Brian Kirwan (pictured), Vesttoo’s global head of P&C and speciality. “Vesttoo enables cedents to strengthen their balance sheets while allowing capital market investors to access an attractive asset class that was previously out of reach.

“We pride ourselves in offering the highest standard of service in the market, especially when this leads to valued clients renewing with us in 2023. This renewal is testament to the hard work by our experienced team members across the globe and we look forward to further developing this mutually-beneficial relationship in the years ahead.”

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