Lottoland has agreed its third two-year long-term deal for its insurance-linked securities (ILS) jackpot insurance Fortuna 3.
The new deal provides €120 million of ILS coverage, marking a €20 million increase.
The previous deals, Fortuna 1 and Fortuna 2, which triggered a renewal option after one year due to the company’s “strong growth”, were completed in April 2015 and June 2016 respectively.
The deals provided Lottoland with a lottery winning risk collaterised reinsurance transaction, domiciled in Gibraltar.
So far, the largest win to be paid out by Lottoland’s ILS was €22 million. As of 1 August, Lottoland has returned over €838 million in total winnings across its business portfolio.
Fortuna 3 is intended to provide Lottoland with even more flexibility to innovate and offer new games to players.
Nigel Birrell, CEO of Lottoland, said: “Our innovative approach to this market is really paying off. The ILS provides a fully reliable way to reinsure against big wins and we’re delighted to have this second two year agreement in place which we have taken to the next level—the only solution in the industry which has proven fast and reliable pay-out of winnings.”
Albert Isola, Gibraltar’s minister for commerce, commented: “Let me congratulate Lottoland and its investors for leading the way with the launch of their third successive ILS transaction. Their success to date and their future plans for innovative ILS structures that will be offered to other participants in the gaming community are very exciting.”
