MultiStrat has announced the completion of its latest casualty linked security (CLS) transaction that was backed by a $14 billion alternative asset manager, which will invest $28 million in a Bermuda domiciled segregated account to support re/insurance liabilities associated with $160 million of estimated written premiums.
According to an announcement on the deal, the latest CLS transaction from MultiStrat features high-frequency low-severity casualty business, and takes the firm’s overall invested capital in these casualty deals to $60 million, covering estimated premiums of $230 million.
Bob Forness, Chief Executive Officer (CEO) of MultiStrat, commented; “We are pleased to expand our CLS offering with world class backers to cover both retrospective and prospective casualty reinsurance transactions. Delivering reinsurance opportunities to investors in a competitive market demonstrates the potential for CLS in the broader markets.”
Investors in the company’s CLS transactions, the first of which was announced in July last year, include alternative asset managers, specialised insurance funds, as well as established reinsurance companies. To date, classes of business covered under the transactions include workers’ compensation and related healthcare liability, employers’ liability, professional liability, and personal auto liability.
Due diligence and the arrangement of the transactions has been completed by MultiStrat Advisors, Inc. and Multi-Strat Re Ltd., with StormHarbour Partners LLP acting as the placement agent.
CEO of MultiStrat Advisors, Jim Robinson, said; “We are pleased to continue our innovation in the CLS market. The collateral backing these transactions will be actively and conservatively managed by investors to produce incremental investment income. This Total Return profile is appealing to a broader population of investors seeking yields with less volatile, non-correlated reinsurance results.”