Neon, which a year ago launched the first insurance-linked securities (ILS) vehicle in the UK, has successfully renewed it.
The London-headquartered global insurer said it has raised third-party capital to support a second ILS transaction via its sidecar NCM Re. “This marks the first reinsurance renewal under the UK’s nascent regulatory regime for alternative capital investment in the reinsurance sector,” noted Neon.
The new ILS transaction is a $77 million collateralised quota share of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios. The amount is higher than last year’s $72 million.
“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,” commented 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.”
NCM Re is described as the first UK-domiciled protected cell company to utilise the ILS regulations passed in 2017.
