ClaRe, Barbican’s newly-launched collateralised retro platform for Lloyd’s carriers, inked deals handing the vehicle exposure to nine syndicates at 1.1, re-Insurance.com understands.
In November 2017, this publication revealed that Barbican was fundraising for the new vehicle with a view to signing up a minimum of 4-6 syndicates at the key renewal date.
The Guernsey-based vehicle entered the year with $100mn of tier-1 capital commitments and it is understood that the majority of that was deployed at 1.1.
The cover is structured as a stop-loss protection for syndicates and incepts at a set aggregate loss ratio across the whole account results.
It is understood that ClaRe offered maximum lines of around $50mn at 1.1.
ClaRe’s structure introduces capital markets to the full suite of risks at Lloyd’s. Historically, ILS players have tended to circle around their well-modelled sweet-spot of natural catastrophe risk.
The vehicle is understood to be the brainchild of Barbican’s group chief actuary Ben Canagaretna and is expected to look to increase capital commitments and the number of syndicates covered at 1.1 next year.
“ClaRe is currently widening its investor base in order to satisfy growing demand for wider product offering,” Canagaretna said in a statement.
The launch of the vehicle followed a devastating string of hurricanes and wildfires that caused significant losses in the retro markets.
ClaRe - which specialises in providing an “out-of-the-money” stop loss product to small to medium sized cat writers - is the latest fee-producing vehicle launched by Carlson Capital-owned Barbican.
In recent years, the David Reeves-headed agency has become a leading incubator of so-called special purpose arrangement (SPA) syndicates where in, partnership with other (re)insurers or investors, it manages sub-syndicates in exchange for a fee rather than exposing their own capital to underwriting risk.
Last year, this publication reported that the new Barbican collateralised vehicle aims to earn both a standard management fee and profit commission from the vehicle.
The $130bn of cat losses in the second half of 2017 also inspired a flurry of higher-layer and retro reinsurance vehicles including Bermudians Ascot Re and Lutece Re.