There aren’t many firsts in an industry that has been around for centuries, but Neon believes it has made one. The company has announced today that it has launched what it has labelled the “first ILS vehicle in the UK” in the form of NCM Re.
The first UK-domiciled protected cell company, NCM Re capitalises on recently approved ILS regulations to provide Neon with the chance to enhance its global reinsurance offering. It is set to use a range of CAT modelling and pricing techniques to source business for third parties.
“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,” commented Martin Reith, Neon Group chief executive.
Neon’s first ILS transaction, is a $72 million (approximately £53 million) collateralised quota share reinsurance transaction that will underwrite a portion of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.
“Successfully raising third party capital shows trust and confidence in Neon’s management team, brand and underwriting proposition,” continued Reith. “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.”
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