MultiStrat Completes Casualty Linked Security

February 15, 2018

MultiStrat announced the completion of another Casualty Linked Security [CLS] transaction of high-frequency low-severity casualty business.

“The transaction was backed by a $14 billion global alternative asset manager. During the program, the investor will invest $28 million in a Bermuda based segregated account to support total liabilities associated with $160 million in estimated written premium,” the company said.

“In the past 12 months, MultiStrat has completed multiple Casualty Linked Security [CLS] transactions with estimated premiums of $230 million and total capital investment of $60 million.

“Investors in MultiStrat’s CLS transactions include alternative asset managers, specialized insurance funds, and established reinsurers. Classes of business covered to date include workers’ compensation and related healthcare liability, employers’ liability, professional liability and personal auto liability.

“MultiStrat Advisors Inc., and Multi-Strat Re Ltd. [collectively “MultiStrat”] arranged and conducted due diligence for the transactions. MultiStrat Re and its Bermuda-based partners will service the transactions. StormHarbour Partners LLP acted as the placement agent.”

Bob Forness, 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.”

“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”, commented Jim Robinson, CEO of MultiStrat Advisors Inc.

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