Global legacy specialist Enstar Group and Artex Capital Solutions, a provider of insurance-linked securities (ILS) insurance management and alternative risk solutions, have partnered to offer streamlined exit solutions for investors in the Artex ILS transformation vehicles, providing investors with access to a diversified suite of prospective and retrospective exit products via Enstar’s Cavello Bay Reinsurance Limited subsidiary.
The offering aims to enhance liquidity, flexibility and execution certainty for investors in Artex-controlled ILS transformation vehicles, and combines Enstar’s legacy and risk management capabilities with Artex’s expertise in advisory, set up, and management of ILS transactions through its transformation vehicles.
This new suite of solutions have been designed to support investors throughout the investment cycle, and the companies explain that the prospective solutions, delivered through forward exit options, will provide liquidity under predefined terms.
Meanwhile, the retrospective solutions, including novations, loss portfolio transfers, adverse development covers, and the purchase of investor interests, aim to deliver finality on existing exposures.
Ultimately, these exit options are designed to accelerate capital release, reduce trapped capital, and provide balance sheet finality, mitigating against loss-creep risk.
David Ni, Chief Strategy Officer, Enstar, commented, “Investors are increasingly seeking greater certainty and flexibility in how they manage their exposures.
“We are thrilled to work with Artex to respond directly to that need, drawing on our experience in the ILS market and our track record of structuring innovative capital release and risk management solutions.”
Kathleen Faries, Chief Executive Officer, Artex Capital Solutions, added, “This collaboration with Enstar is a significant step in our mission to provide innovative and tailored solutions for our clients.
“By combining our expertise, we are creating a seamless and efficient process that will redefine exit solutions in the ILS market. Together, we are enabling an efficient way for investors to unlock capital, stabilise earnings, and refocus on core priorities.”
