Neon announced it has launched the first ILS vehicle in the UK, NCM Re (UK PCC) Ltd., and raised third party capital to support the UK’s first ILS transaction.
NCM Re is the first UK-domiciled protected cell company, which utilizes recently approved ILS regulations, Neon said, noting that the ILS vehicle will further enhance its global reinsurance offering to clients.
“NCM Re will use a range of CAT modeling and pricing techniques to leverage Neon’s strong underwriting and risk selection skills to source business for third party investors,” Neon added.
Neon’s first ILS transaction, which launched on Jan. 1, 2018, is a $72 million collateralized quota share reinsurance transaction that will underwrite a portion of Neon Syndicate 2468’s property treaty reinsurance and direct and facultative portfolios.
“Successfully raising third party capital shows trust and confidence in Neon’s management team, brand and underwriting proposition,” said Martin Reith, Neon group chief executive. “NCM Re now provides Neon with the ability to raise third party capital to support collateralized ILS transactions where Neon can source bespoke opportunities for investors.”