Increasing jackpot sizes and the desire to diversify led Lottoland, a specialist provider of betting services, to issue Gibraltar’s first ILS. Nigel Birrell, CEO, Lottoland, talks to Intelligent ILS about the transaction and the benefits for both the company and Gibraltar.
In April 2015, Lottoland placed a €100 million insurance-linked security (ILS). The deal was the first ILS to be issued from Gibraltar and one of only a small number to have transferred the risk of substantial or multiple pay-outs on lotteries using this structure.
The risk is transferred by means of an issuance vehicle, Euroguard Insurance Company, based in Gibraltar. The coverage is triggered at €5 million. Deals like this are unusual, although MyLotto24 has previously used a similar ILS structure to transfer this type of risk off its books.
The deal represents an innovative move for Lottoland and adds a new dimension to its portfolio of risk-transfer products, as the company’s CEO, Nigel Birrell, explains.
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ILS, Lottoland, Gibraltar