London-headquartered re/insurance specialist Neon has successfully renewed its NCM Re sidecar a year on from its launch as the UK’s first ILS vehicle to utilise regulations passed in 2017.
The transaction was launched on 1 January 2019 and is a $77 million collateralised quota share of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.
The vehicle’s initial creation, and subsequent renewal, was directly enabled by updates to the UK government’s associated taxation system, legal framework, and options for setting up an ILS vehicle.
The move was seen as an attempt by the UK to ensure the re/insurance business environment remains competitive throughout the transition out of European Union.
“We are delighted with the continued support from existing investors and that new investors enabled us to increase the size of the transaction this year,” said Mark Gibson, Alternative Capital Director at Neon.
“This is quite an achievement given ILS market conditions and we are pleased to have sponsored the first renewal transaction under the UK regime, facilitated by early engagement with the Prudential Regulation Authority.”
