Lancashire Holdings Limited ("Lancashire" or the "Company") has today announced that Kinesis Capital Management Limited ("KCM") has commenced underwriting fully collateralised reinsurance business on behalf of Kinesis Reinsurance I Limited ("Kinesis Re").
Following the successful fund-raising conducted by Kinesis Re’s parent company, Kinesis Holdings I Limited (“Kinesis Holdings”), from a number of external investors, Kinesis Re has underwritten its first tranche of multi-class reinsurance agreements with combined aggregate limits in excess of USD 250 million, which incepted on or around 1 January 2014. All the reinsurance contracts are fully collateralised. Lancashire contributed 10 per cent of the capital raised by Kinesis Holdings. Goldman Sachs worked with Lancashire to structure the Kinesis vehicles, which will allow investors access to the market on a regular and opportunistic basis.
Richard Brindle, Lancashire’s Chief Executive Officer, said: "The successful launch of Kinesis, as a multi-class, fully collateralised reinsurance provider, is an exciting development in Lancashire’s third party capital management strategy. We have built an excellent team at KCM, led by Darren Redhead, which has strong underwriting skills and capabilities and this bodes well for future growth. Together, Lancashire, Kinesis and Cathedral constitute our three platforms to access different kinds of capital, all with high calibre, established underwriters. This approach allows us to provide brokers and clients with insurance and reinsurance solutions for all types of risk transfer requirements."
Darren Redhead, KCM’s Chief Executive Officer, said: 'We are delighted that the Kinesis vehicles are now fully established and funded and we look forward to continuing to develop KCM’s business and reputation in the Insurance-Linked Securities arena. We are very pleased with the start we have made, with the quality of the investors and clients, and are looking to develop further capacity and specialty class transactions during the year ahead".
For further information, please contact:
|Lancashire Holdings Limited
|+44 20 7264 4145
|Jonny Creagh-Coen||+44 20 7264 4066
|Haggie Partners||+44 20 7562 4444|
|Peter Rigby||(Peter Rigby mobile +44 7803851426)|
Lancashire, through its UK and Bermuda-based operating subsidiaries, is a global provider of specialty insurance and reinsurance products. The Group companies carry the following ratings:
|Long Term Issuer
|A.M. Best||A (Excellent)||Stable||bbb|
|Standard & Poor’s||A-||Stable||BBB|
(1) Financial Strength Rating and Financial Strength Outlook apply to Lancashire Insurance Company Limited and Lancashire Insurance Company (UK) Limited.
(2) Long Term Issuer Rating applies to Lancashire Holdings Limited.
NB: Cathedral benefits from Lloyd’s ratings: Standard & Poor’s: A+ (Strong); A.M. Best: A (Excellent); and Fitch: A+ (Strong).
Lancashire has capital in excess of $1.5 billion and its common shares trade on the Main Market of the London Stock Exchange under the ticker symbol LRE. Lancashire has its corporate headquarters and mailing address at Level 11, Vitro, 60 Fenchurch Street, London EC3M 4AD, United Kingdom and its registered office at Power House, 7 Par-la-Ville Road, Hamilton HM 11, Bermuda.
For more information on Lancashire, visit the Company’s website at www.lancashiregroup.com
Lancashire Insurance Company Limited is regulated by the Bermuda Monetary Authority in Bermuda.
Lancashire Insurance Company (UK) Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK.
KCM and Kinesis Re are regulated by the Bermuda Monetary Authority in Bermuda.
For more information on Lancashire’s subsidiary, Cathedral Capital Limited (“Cathedral”), visit Cathedral’s website at www.cathedralcapital.com
Cathedral Underwriting Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK.
THIS RELEASE IS FOR INFORMATION ONLY AND DOES NOT CONSTITUTE AN OFFER OR INVITATION TO UNDERWRITE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OR INVESTMENT ADVICE IN ANY JURISDICTION. PERSONS NEEDING ADVICE SHOULD CONSULT AN INDEPENDENT FINANCIAL ADVISER. THIS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES TO THE PUBLIC IN THE UNITED STATES, UNITED KINGDOM OR IN ANY OTHER JURISDICTION. THERE HAS NOT BEEN, AND WILL NOT BE, ANY PUBLIC OFFERING OF SECURITIES IN CONNECTION WITH THE FUND-RAISING CONDUCTED BY KINESIS HOLDINGS REFERRED TO IN THIS RELEASE IN THE UNITED STATES, THE UNITED KINGDOM OR ANY OTHER JURISDICTION.
CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELLED LOSS SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE THAT ARE NOT BASED ON CURRENT OR HISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION, STATEMENTS CONTAINING THE WORDS "BELIEVES", "ANTICIPATES", "PLANS", "PROJECTS", "FORECASTS", "GUIDANCE", "INTENDS", "EXPECTS", "ESTIMATES", "PREDICTS", "MAY", "CAN", "WILL", "SEEKS", "SHOULD", OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALL SUCH STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THE GROUP’S OR THE ENLARGED GROUP’S (I.E. THE GROUP, INCLUDING THE CATHEDRAL GROUP) FINANCIAL POSITION, RESULTS OF OPERATIONS, PROSPECTS, GROWTH, CAPITAL MANAGEMENT PLANS AND EFFICIENCIES, ABILITY TO CREATE VALUE, DIVIDEND POLICY, OPERATIONAL FLEXIBILITY, COMPOSITION OF MANAGEMENT, BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATING TO THE GROUP’S OR THE ENLARGED GROUP’S INSURANCE BUSINESS) ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE GROUP OR THE ENLARGED GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.
THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO: THE ENLARGED GROUP’S ABILITY TO INTEGRATE ITS BUSINESSES AND PERSONNEL, THE SUCCESSFUL RETENTION AND MOTIVATION OF THE ENLARGED GROUP’S KEY MANAGEMENT, THE INCREASED REGULATORY BURDEN FACING THE ENLARGED GROUP, THE NUMBER AND TYPE OF INSURANCE AND REINSURANCE CONTRACTS THAT THE GROUP WRITES OR THE ENLARGED GROUP MAY WRITE; THE PREMIUM RATES WHICH MAY BE AVAILABLE AT THE TIME OF SUCH RENEWALS WITHIN ITS TARGETED BUSINESS LINES; THE POSSIBLE LOW FREQUENCY OF LARGE EVENTS; POTENTIALLY UNUSUAL LOSS FREQUENCY; THE IMPACT THAT THE ENLARGED GROUP’S FUTURE OPERATING RESULTS, CAPITAL POSITION AND RATING AGENCY AND OTHER CONSIDERATIONS MAY HAVE ON THE EXECUTION OF ANY CAPITAL MANAGEMENT INITIATIVES OR DIVIDENDS; THE POSSIBILITY OF GREATER FREQUENCY OR SEVERITY OF CLAIMS AND LOSS ACTIVITY THAN THE ENLARGED GROUP’S UNDERWRITING, RESERVING OR INVESTMENT PRACTICES HAVE ANTICIPATED; THE RELIABILITY OF, AND CHANGES IN ASSUMPTIONS TO, CATASTROPHE PRICING, ACCUMULATION AND ESTIMATED LOSS MODELS; THE EFFECTIVENESS OF ITS LOSS LIMITATION METHODS; THE POTENTIAL LOSS OF KEY PERSONNEL; A DECLINE IN THE GROUP’S OPERATING SUBSIDIARIES’ RATING WITH A.M. BEST, STANDARD & POOR’S, MOODY’S OR OTHER RATING AGENCIES; INCREASED COMPETITION ON THE BASIS OF PRICING, CAPACITY, COVERAGE TERMS OR OTHER FACTORS; CYCLICAL DOWNTURNS OF THE INDUSTRY; THE IMPACT OF A DETERIORATING CREDIT ENVIRONMENT FOR ISSUERS OF FIXED INCOME INVESTMENTS; THE IMPACT OF SWINGS IN MARKET INTEREST RATES AND SECURITIES PRICES; A RATING DOWNGRADE OF, OR A MARKET DECLINE IN, SECURITIES IN ITS INVESTMENT PORTFOLIO; CHANGES IN GOVERNMENTAL REGULATIONS OR TAX LAWS IN JURISDICTIONS WHERE THE GROUP OR THE ENLARGED GROUP CONDUCTS BUSINESS.
ALL FORWARD-LOOKING STATEMENTS IN THIS RELEASE SPEAK ONLY AS AT THE DATE OF PUBLICATION. LANCASHIRE EXPRESSLY DISCLAIMS ANY OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR REGULATORY OBLIGATIONS INCLUDING THE RULES OF THE LONDON STOCK EXCHANGE) TO DISSEMINATE ANY UPDATES OR REVISIONS TO ANY FORWARD-LOOKING STATEMENTS TO REFLECT ANY CHANGES IN THE GROUP’S OR THE ENLARGED GROUP’S EXPECTATIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.