Flagstone Buys Coverage from Montana Re
Flagstone Reinsurance Holdings, S.A. — which has its executive offices in Bermuda — announced today (Dec. 23) that Flagstone Réassurance Suisse SA, has purchased three years of fully collateralised retrocessional coverage from Montana Re Ltd., a special purpose reinsurer in the Cayman Islands.
Montana Re offers Flagstone protection on its reinsurance portfolio through three separate tranches, utilising the Risk Management Solutions Paradex index trigger for US hurricane and earthquake, Japan typhoon and earthquake, Europe windstorm, and for the first time, Cayman Islands hurricane.
Montana Re has issued $70 million of Series 2010 – 1, Class C Principal-at-Risk Variable Rate Notes due January 8, 2014, $80 million of Series 2010-1, Class D Principal-at-Risk Variable Rate Notes due January 8, 2014, and $60 million of Series 2010-1, Class E Principal-at-risk Variable Rate Notes due January 8, 2014 to collateralise its obligations under the retrocession agreements. Risk analysis for the transaction was performed by RMS.
David Brown (pictured above), Flagstone’s Bermuda-based CEO, commented: “We are very pleased with the result of this transaction. We have continued to demonstrate our ability to access the capital markets to diversify our sources of coverage and have benefitted from the efficiencies of purchasing cover over multi-year periods. These transactions continue to reinforce our capital strength and attractiveness as a quality partner for our clients.”
Currently marking its fifth anniversary, Flagstone Reinsurance Holdings, S.A., through its operating subsidiaries, is a global reinsurance and insurance company that employs a focused and technical approach to the property catastrophe, property and specialty reinsurance and insurance businesses.
