Collateralised reinsurer Oxbridge Re Ltd has had its reinsurance sidecar subsidiary, Oxbridge Re NS Ltd., licensed for business in the Cayman Islands and has issued its first tranche of notes.
The idea behind forming the sidecar was to “facilitate potential future hedging and investment activities with respect to our reinsurance risks,” Oxbridge Re had said at the time.
The sidecar was first announced in December 2017 and offers a more efficient way for Oxbridge Re to channel capital into its underwriting structure, with third-party investors able to buy into series of notes that it will issue.
Already, Oxbridge Re NS has issued a Series 2018-1 tranche of Participating Notes due June 1st 2021 in a private placement, with an initial $2 million of capital deployed into a quota-share reinsurance agreement with Oxbridge Reinsurance Limited.
Jay Madhu, Chairman and Chief Executive Officer (CEO) of Oxbridge Re, commented, “We are happy to report the successful licensing of Oxbridge Re NS, and deployment of capital.”
