Oxbridge Re’s sidecar avoids impact from 2019 catastrophes so far

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The Oxbridge Re NS Ltd. fully collateralized reinsurance sidecar vehicle sponsored by Cayman Islands based reinsurance firm Oxbridge Re Ltd. has avoided losses from all of the recent global catastrophe loss events.

The Oxbridge Re NS quota share reinsurance sidecar has managed to avoid any impact from events including the Japanese typhoons right up to the most recent Hagibis, while also avoiding any losses from hurricane Dorian during Q3 as well.

Oxbridge Re reported its third-quarter results yesterday and revealed that the company got through the period with a loss ratio of zero, as none of the catastrophe events occurring in the period affected its underwriting portfolio.

ILS issuer NB Reinsurance raises $19.2m in BSX share offering

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NB Reinsurance, a Bermuda-based issuer of ILS, has completed an offering of 19,231 non-voting preferred shares on BSX, effective June 3, 2019.

The shares were issued at $1,000.00 per share, to raise $19.2m.

Clarien BSX Services acted as listing sponsor, while Conyers Dill & Pearman served as legal advisor. Horseshoe Group acts as NB Re’s insurance manager.

NB Re, a subsidiary of Neuberger Berman, a US-based asset management company, said ILS provides greater transparency and less counterparty risk than traditional insurance-related strategies.

Alex Conyers, vice president of NB Re, said, “We believe this transaction represents an important milestone with positive implications for the ILS asset class in Bermuda, further cementing its place at the centre of convergence for the insurance and capital markets.”

Palomar raises IPO ambitions, aims for $97m to $110m

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Speciality California-based catastrophe exposed property insurer Palomar Insurance Holdings has raised its target for an impending Nasdaq initial public offering (IPO), hoping to raise as much as $110 million at the top-end of its share price estimates.

Palomar Insurance Holdings had been targeting an IPO capital raise of around $50 million, to fund further growth and to repay debt it had issued and that was invested in by two insurance-linked securities and investments specialists.

Palomar ambitions to expand as a provider of insurance to areas of the market that it feels are underserved, leveraging reinsurance and ILS capital to support its underwriting of catastrophe exposed property risks.

With a particular focus on the flood, wind and earthquake insurance markets, Palomar operates in areas where significant reinsurance support is required to operate sustainably.

Palomar seeks $50m IPO, will repay Fermat & Cohen debt investments

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Palomar Insurance Holdings, the speciality California-based insurer that provides largely catastrophe exposed property covers, as seeking to raise $50 million in a Nasdaq initial public offering (IPO), adding to the $20 million it raised in a debt issuance invested in by ILS specialists Fermat Capital Management and investor Cohen & Company.

Palomar Insurance has expansive ambitions to grow as a provider of insurance to areas of the market that it feels are underserved, leveraging reinsurance and ILS capital to support its underwriting of catastrophe exposed property risks.

In particular Palomar has had a focus on the flood, wind and earthquake insurance markets, areas where significant reinsurance support are clearly required to operate sustainably.

Watford Re IPO’s on Nasdaq at discount to book value

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Watford Holdings Ltd., the parent company to Arch Capital and Highbridge Principal Strategies backed investment oriented or total-return style reinsurance firm Watford Re, successfully completed its initial public offering (IPO) on the Nasdaq.

Watford Re is a valuable component of Bermudian insurance and reinsurance firm Arch Capital’s strategy to embrace third-party capital, bringing additional efficiency and income to the firms overall operations.

Backed by third-party, largely institutional investors, Watford Re follows a total-return or hedge fund like strategy.

It underwrites mid to longer-tailed, largely casualty reinsurance business with the assistance of the Arch Capital platform, while asset manager Highbridge Principal Strategies invests the reinsurers long-term assets in strategies aiming to achieve a higher return than a typical re/insurer would normally seek.

Watford Re, investment oriented reinsurer backed by Arch, targets IPO

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Watford Holdings Ltd., the Arch Capital and Highbridge Principal Strategies backed parent to investment oriented or total-return style reinsurance firm Watford Re, has filed for an initial public offering (IPO) on the Nasdaq.

Watford Re has become a valuable component to Bermudian insurance and reinsurance firm Arch Capital’s strategy to embrace third-party capital, bringing additional efficiency to the firms operations.

Watford Re is backed by third-party, largely institutional investors, and follows a total-return or hedge fund like strategy, in that it underwrites mid to longer-tailed, largely casualty reinsurance business with the assistance of the Arch Capital platform, while asset manager Highbridge Principal Strategies invests its assets in strategies aiming to achieve a higher return than a typical re/insurer would.

As such, Watford Re represents a third-party capital play of sorts for Arch Capital, giving the re/insurer a way to leverage the appetite of institutional investors to access reinsurance risk,  earn fee income, along with enhanced returns from a more active and higher-risk investment strategy.

Oxbridge Re expects sidecar support for wildfire & Michael losses in Q4

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Cayman Islands based reinsurance firm Oxbridge Re Ltd. said that its fully collateralized reinsurance sidecar vehicle Oxbridge Re NS Ltd. will support the firms losses from both hurricane Michael and the California wildfires in Q4 2018.

Oxbridge Re said that it now expects to suffer a $6 million impact from catastrophe losses in the fourth-quarter of 2018, largely driven by these two major events.

The reinsurer said that it expects to report $3.1 million in losses from hurricane Michael and $2.9 million in losses from the California Wildfires in its Q4 2018 results.

Sidecar diversifies revenue streams for Oxbridge Re: CEO Madhu Share

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The Chairman and Chief Executive Officer (CEO) of collateralised reinsurer Oxbridge Re Ltd., Jay Madhu, explained that the firm’s recently launched sidecar vehicle diversifies its revenue streams and risk.

Oxbridge Re announced plans for its sidecar vehicle, Oxbridge Re NS Ltd., in late 2017 after registering the company in the Cayman Islands in December of 2017 as an exempted company.

The company’s Chairman and CEO said earlier this year that its newly licensed sidecar vehicle, which essentially enables the company to access capital markets capacity to augment its underwriting structure, shows that the firm has ambitions to be more of an asset manager.

IPO target halved for Kingsway / 1347 backed Insurance Income Strategies

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The target for the initial public offering (IPO) and first capital raise for Insurance Income Strategies Ltd., the listed industry-loss warranty (ILW) focused insurance-linked securities (ILS) and collateralized reinsurance fund backed by 1347 Advisors and Kinsgway Financial, has been halved.

Last October we covered the initial filings for the new ILS fund vehicle, which intends to act as a feeder into ILW specialist reinsurance fund manager Cartesian Re to begin.

Later, SEC filings showed that Bermuda-based Insurance Income Strategies Ltd. would seek to issue up to $52 million of shares to investors in an initial public offering, to be followed with a listing of its shares on the NASDAQ Capital Market.

Now the targeted amount for the capital raise has dropped down to almost half, with a public offering price stated of $26 million, although additional shares could be issued to the underwriters of the IPO which could boost the proceeds closer to $29.9 million.

Watford Re exploring potential for IPO and listing

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An initial public offering (IPO) could be on the cards for Watford Re, the third-party capital backed total-return reinsurance venture part-owned by Bermudian specialist re/insurer Arch Capital and asset manager Highbridge Principal Strategies, as its parent holding company said it was evaluating options for a listing.

Watford Re was launched back in 2014 as a third-party capital play of sorts for Arch Capital, giving the re/insurer a way to leverage the appetite of institutional investors to access reinsurance risk, along with the enhanced returns of a more active and higher-risk investment strategy.

The total-return, or investment oriented, reinsurer approach has worked well for Watford and Arch, with the vehicle’s size and portfolio of risk growing with each quarter into a meaningful contributor to the Arch earnings, when investment and underwriting performance align at least.

The plan will always have been to take Watford Re and its platform to IPO, to maximise the value for the backers and early investors while also growing its capital base at the same time.