GC Securities and Marsh Captive Solutions have established Cerulean Re SAC, a private syndicated collateralised reinsurance platform, Bermuda-registered segregated account company (SAC) and licensed special-purpose insurer.
The joint venture provides a cost-effective placement process for collateralised reinsurance and private catastrophe bond deals.
The solution allows insurers to access the capital needed to enter new markets, while initiating relationships with capital market investors.
Cory Anger, global head of insurance-linked securities (ILS) origination and structuring for GC Securities, said: “Insurers, reinsurers, corporations and governments accessing long-term capital markets-based protection can now receive unparalleled support and expertise that brings the right capital to their risks.”
Anger added: “This collaboration offers an expansion of collateralised reinsurance opportunities, matching a more diverse range of capital sources seeking non-correlating investments to the unique risk profile of clients, thereby creating more efficient solutions.”
The SAC mechanism allows development to focus on better risk solutions, rather than on delivery platforms, and the client base within Marsh Captive Solutions provides an opportunity to introduce elements of primary corporate risk to ILS transactions, according to GC Securities.
David Priebe, vice chairman of Guy Carpenter, commented: “ILS is an established part of the reinsurance and capital markets, and its participation is not wholly dependant on the reinsurance and insurance cycle.”
“Cerulean leverages this capacity to support uninsured and underinsured risks, including emerging risks such as cyber and the ‘internet of things’, and we are excited about its ability to help our clients bring opportunity to risk to grow profitability.”