Vesttoo renews casualty quota share at $120m for Lloyd’s syndicate

Vesttoo, the insurance-linked securities (ILS) focused financial technology company, has renewed a capital market backed casualty quota share reinsurance arrangement at an upsized $120 million over the prior year, for a leading Lloyd’s syndicate.

The company said that the casualty quota share ILS transaction, which was brokered by Howden Tiger, “highlights continued global demand to bridge the insurance and capital markets.”

We’re told that the $120 million renewal is a larger size than the same casualty ILS deal was a year earlier, which Vesttoo also transacted for the Lloyd’s syndicate counterparty.

The arrangement provides multi-line cover for a portfolio of long-tail, North American treaty reinsurance, the firm said.

Vesttoo said it highlights its “commitment both to finding collateralized solutions for complex portfolios and delivering the levels of service required to retain cedents as long-term partners.”

“This transaction highlights what Vesttoo brings to the market – a new bridge between the insurance and the capital markets,” explained Brian Kirwan, Vesttoo’s Global Head of P&C and Speciality.

“Vesttoo enables cedents to strengthen their balance sheets while allowing capital market investors to access an attractive asset class that was previously out of reach.

“We pride ourselves in offering the highest standard of service in the market, especially when this leads to valued clients renewing with us in 2023.

“This renewal is testament to the hard work by our experienced team members across the globe and we look forward to further developing this mutually-beneficial relationship in the years ahead,” Kirwan added.

Vesttoo is forecasting significant growth for the segment of insurance-linked securities (ILS) it is most focused on.

Demand for uncorrelated, low-volatility assets and lack of capacity in the traditional reinsurance industry, are all cited as drivers, with the non-catastrophe ILS space expected to expand significantly over the coming years.

Vesttoo has transacted with Lloyd’s syndicates before, as over a year ago we covered a capital market backed stop-loss transaction it had entered into with another player in that key market.