USA Risk Group has launched the first securitisation cell company (SCC) in Malta to be set up as a reinsurance special purpose vehicle (RSPV).
Exchange Re, which will be managed by USA Risk's Malta office, will operate as an open architecture system allowing third-party insurance managers to manage their own cells for clients within the SCC, which allows for the launch of multiple securitisation transactions without incurring any risk of cross-contamination between the different sets of creditors and investors.
USA Risk vice president Jennifer Hawkins wrote in a blog post on 25 February: “Clients are expected to come from multiple sources, including European insurers, captives and corporates. USA Risk looks forward to leading the way with RSPVs in Malta.”
Malta moved capitalise on the insurance-linked securities (ILS) sector in 2013 by allowing the formation and domicile of RSPVs.
It was also among the first EU jurisdictions to make cell structures available for ILS transactions.
