Aon Insurance Managers in Guernsey announced that a managed vehicle Solidum Re Eiger IC Limited has listed bonds with value at risk of $52,500,000 on the Channel Islands Stock Exchange (CISX).
These bonds are in support of a reinsurance placement accepted by the Incorporated Cell from the Californian Earthquake Authority. This is the first listing for the CISX where natural catastrophe perils are the underlying exposure for “principal at risk” notes.
“This is another significant step in the development of Guernsey as a reinsurance market where insurance linked securities (“ILS”) represent an ever larger part of the available global capacity,” said a statement from Aon.
“Aon and the GFSC have worked in consultation with clients over a number of years to make Guernsey a competitive jurisdiction with its own positive differentiators for ILS.”
John Rowson, executive director of Aon Insurance Managers (Guernsey) and a director of Solidum Re Eiger IC Limited said that he was pleased to be involved in this local development of the burgeoning ILS industry.
“Guernsey’s proximity to London, robust regulation and secure credit rating give the jurisdiction huge opportunities to grow in this space where innovation and experienced legal firms are essential. Having Mark Helyar of Bedell Cristin involved has been critical to a successful and smooth listing.”
Cedric Edmonds, partner at Solidum Partners and director of Solidum Re Eiger IC Limited said: “Solidum Partners chose Guernsey as a jurisdiction for its incorporated cell reinsurance company and private cat bond platform due to the Incorporated cell company legislation and the quality and ‘can do’ attitude of the service providers when faced with something new.
“Solidum was the first entity to issue private cat bonds and to date the only entity to have their private placement cat-linked notes traded. The current listing on the CISX is the next step to broader dissemination and acceptance. To date the Solidum vehicles have issued in excess of $100 million of notes and we look forward to growing this number in the future. ”
