Bernina Re, a recently established Bermuda domiciled reinsurance platform for Credit Suisse Insurance Linked Securities Ltd. (CS ILS), has named Michael McKnight as its Chief Executive Officer (CEO) and Chief Risk Officer (CRO).
Bernina Re, which currently manages more than US $2 billion in trading volume, was launched as the flagship reinsurance company for CS ILS, which is one of the two largest insurance-linked securities (ILS) fund managers globally with AUM of approximately $9 billion.
McKnight brings over 30 years’ industry experience to Bernina Re, most of which have been spent in the Bermuda marketplace.
He has previously served as Chief Actuary & Chief Risk Officer at Third Point Re, Chief Actuary for Max Capital Group, and Chief Underwriting Officer for Gerling Global International Reinsurance Company.
Niklaus Hilti, CEO of CS ILS, commented: “We have chosen to establish Bernina Re in Bermuda at this time for numerous reasons including the fact that it is a highly respected jurisdiction and enjoys Solvency II equivalence with Switzerland and other European countries. Furthermore, Bermuda is a well-established international insurance industry jurisdiction that is held in high regard throughout the insurance and reinsurance community.”
He continued: “We believe Michael brings a unique skillset to our team and has the experience to lead Bernina Re as we build out the platform. Proper risk management and governance are fundamental cornerstones of our operation, and we believe Michael will be key in assuring that we adhere to our high standards.”
Bernina Re is a Class 3A reinsurance company and is Solvency II compliant, which will allow CS ILS to more efficiently underwrite reinsurance contracts in other Solvency II compliant domiciles, such as Switzerland, the EU, and Japan.
The company will also enhance CS ILS’s existing broad market access platform, which includes ILS positions in the catastrophe bond and traditional reinsurance markets, and uses a combination of collateralised reinsurance, rated reinsurers, and a Lloyd’s syndicate.
Michael McKnight added: “I have been following the progress of CS ILS for years and have always been impressed by their innovation in the ILS space. They have a proven track record of both attracting capital and deploying that capital in an efficient and profitable manner. The head of CS ILS, Niklaus Hilti, has assembled a tremendous team of talented professionals, and I look forward to working closely with them.”
