Brit, a Lloyd's of London insurer, has launched a new multi-arrangement insurance special purpose vehicle (MISPV) in the form of Sussex Capital UK for writing collateralized reinsurance.
Image: Brit launches Sussex Capital UK to write collateralized reinsurance. Photo: courtesy of Helloquence/Unsplash.com.
According to Brit, Sussex Capital UK is the first transformer vehicle to be granted permit by the Prudential Regulation Authority (PRA) under the new insurance-linked securities (ILS) regime in the UK to execute activities of a MISPV.
Brit CEO Matthew Wilson said: “I am both excited and proud to announce the launch of Sussex Capital UK, a landmark development in the emerging ILS market here in the UK.
“Sussex Capital UK further enhances Brit’s client and broker proposition and positions Brit extremely well to support growth in the UK’s ILS market as demand evolves over time.”
Brit, which is a global specialty insurer and reinsurer, said that Sussex Capital UK will focus on writing general collateralized reinsurance for various cedents through its distribution network in the London market.
Initially, the new MISPV will be engaged on property catastrophe coverage, with capacity delivered by Sussex Capital.
In December 2017, Brit had launched Sussex Capital as its Bermuda-domiciled collateralized reinsurance platform. Through Sussex Re, a Bermuda-domiciled special purpose insurer, Sussex Capital writes direct collateralized reinsurance while also offering collateralized reinsurance to the reinsurance portfolio of Brit.
Brit CFO Mark Allan said: “Sussex Capital UK extends Brit’s ILS capability into the UK, further enhancing … access to property catastrophe risk for our investors over the long term.
“We are excited to be at the forefront in supporting the London market’s ILS ambitions and would like to thank the UK regulators for their commitment and responsiveness through the application process.”
Headquartered in London, Brit was acquired by Canada-based Fairfax Financial in a deal worth around $1.88bn in 2015. Fairfax made the acquisition to broaden its risk portfolio with Brit expected to leverage the former’s expertise in the US and international insurance and reinsurance markets.
In early August 2018, Brit reported gross written premiums of $1.15bn for the six months ended 30 June.