Reinsurance News

Liberty Mutual in new $278mn Limestone Re collateralised reinsurance deal

29th June 2018 - Author: Matt Sheehan

U.S primary insurer Liberty Mutual has secured $278 million of collateralised reinsurance for its U.S property catastrophe program through a new transaction with Limestone Re, a Bermuda domiciled segregated account company.

liberty mutualActing as a sidecar vehicle for Liberty Mutual, Limestone Re issued a series of participating notes to investors in a private placement transaction.

Liberty Mutual said the deal will also provide collateralised reinsurance for its U.S homeowners and global property reinsurance risk.

This announcement marks Liberty Mutual’s second capital markets transaction with Limestone Re, having secured $160 million of collateralised reinsurance via the company in December 2016.

“Reinsurance through the Limestone Re platform forms an integral component of Liberty Mutual’s long-term strategy for accessing third-party capital,” said James Slaughter, Senior Vice President and Chief Underwriting Officer of Liberty Mutual’s Global Risk Solutions strategic business unit.

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He continued: “Liberty Mutual is able to leverage our global distribution platform to provide, through reinsurance with the Limestone Re platform, insurance-linked securities (ILS) investors diversified pools of risk while concurrently bringing investors as close as possible to the underlying insurance risks.

“This latest transaction brings the total Limestone reinsurance collateralized capacity placed with ILS investors to nearly $700 million, demonstrating our commitment to the ILS market.”

Matthew Moore, President, Liberty Specialty Markets at Liberty Mutual, said that investors had responded positively to the Limestone Re offering.

“We’re pleased with the overwhelmingly positive market reception and look to continue to broaden our partnerships with ILS investors through future transactions,” he stated.

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