Underwriting comes first – not just another collateralised ILW writer, but an experienced team leveraging Lancashire and Cathedral’s expertise to build unique, tailored products.
Discipline – not seeking to deploy capacity for the sake of fees only. Thorough research of products and opportunities since its formation. Un-deployed capital is always returned to investors promptly.
Nimble reactions supported by a solid core of business – core product is a long-term part of reinsurance protection and capital relief planning but here is the ability to upscale and expand products dramatically following a market dislocation.
Balancing risk and reward – multiple analyses of exposures with comparison to historic events and own proprietary data across multiple lines.
- Backed up by Lancashire’s excellent track record and reputation.
- Leveraging Lancashire’s existing systems, data, relationships, infrastructure and processes in place.
- Fully dedicated team that writes its own deals and has its own underwriting committee.
- One of the few entities generating new business without cannibalising existing accounts.
- Very transparent with frequent reporting, no black-box concept.
- Able to generate extra returns by selling multi-class reinsurance covers where current supply is scarce.
- Investors can now have access to Lancashire’s underwriting expertise without the correlation to traditional financial markets.
- Focusing on multi-class fully collateralised reinsurance across different classes such as property catastrophe, aviation, marine, energy and terrorism.
- Deploying capacity on 1 January and 1 July of every year, with potentially doing even more during market dislocations via special draws.
- Educating sophisticated reinsurance clients and designing bespoke products for them which will ultimately add value to their usual reinsurance purchases.
- Targeting expected returns in the mid-teens, pre fees.