Neon has sponsored its second insurance-linked securities (ILS) transaction through its UK-based transformer vehicle NCM Re, the first reinsurance renewal under the UK regulatory regime for alternative capital investment in the reinsurance sector.
The transaction was launched 1 January and is a $77 million collateralised quota share of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.
In January last year, Neon launched NCM Re, the UK’s first ILS vehicle, and sponsored the UK’s first ILS transaction.
The launch of NCM Re and sponsoring of the transaction followed the UK government decision to pass ILS regulations in December 2017.
Mark Gibson, alternative capital director at Neon, said the company was delighted that size of the transaction could be increased this year, due to the continued support of existing investors and the addition of new investors.
Gibson said: “This is quite an achievement given ILS market conditions and we are pleased to have sponsored the first renewal transaction under the UK regime, facilitated by early engagement with the Prudential Regulation Authority.”
