Neon has announced the launch of the first ILS vehicle in the UK, NCM Re (UK PCC), after having raised third-party capital to support the UK’s first ILS transaction which was finalised on January 1st.
Neon’s first ILS transaction is a $72 million collateralised quota share reinsurance transaction that will underwrite a portion of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.
Martin Reith, Neon Group Chief Executive, said; “I am both excited and proud to see Neon making history – not only is it a testament to Neon’s commitment to doing things differently but it also underpins our attitude as a business-unafraid to lead the way and embrace change.
“Successfully raising third-party capital shows trust and confidence in Neon’s management team, brand and underwriting proposition. NCM Re now provides Neon with the ability to raise third-party capital to support collateralised ILS transactions where Neon can source bespoke opportunities for investors.
“Our investors will benefit from strong, data-driven risk selection and underwriting alongside a clear focus on delivering targeted returns, while we will look to increase our relevance and offering to clients. We look forward to continuing to develop our capital market presence as Neon builds on this landmark moment.”
NCM Re said it plans to use a range of CAT modelling and pricing techniques to leverage Neon’s underwriting skills to source business for third-party investors.
As the first UK-domiciled protected cell company – NCM Re capitalises on the recently approved ILS regulations to enhance NEON’s global reinsurance offering to clients.
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