26 October 2015 Insurance

New Horseshoe unit to help asset managers form reinsurers

Horseshoe Group, an insurance manager dedicated to the convergence market, has formed a new unity designed to help asset managers form their own reinsurance company without significant start-up costs.

Convergence Risk Services (CRS) will use the existing platform and capabilities Horseshoe currently offers in the management of reinsurance companies, the company said.

CRS will form standalone reinsurance companies for asset managers seeking a cost effective way to form their own reinsurance company without significant startup costs or large initial capital expenditures.

Horseshoe has also announced that CRS has successfully licensed the first reinsurer on its platform.

CRS has hired casualty reinsurance underwriter Steven Musicant as chief underwriting officer, who will underwrite on behalf of CRS clients. Horseshoe chief operating officer Brenton Slade has been appointed as chief executive officer (CEO) of CRS.

“We are extremely excited about the formation of CRS and our ability to leverage our existing infrastructure to provide full-service solutions in the formation of these type of reinsurers,” said Andre Perez, CEO of Horseshoe.

“We believe there will be a significant demand from small and medium sized asset managers to form cost effective reinsurers to enter the casualty market. Taking a page out of the ILS market book, the reinsurers on the CRS platform will fully collateralize their obligations which will make them top reinsurance security without the need of an agency rating.”

Slade added: “CRS will effectively act as a launchpad for this type of reinsurer by providing a cost effective solution to start operations without committing to significant costs until the business ramps up.

“CRS is unique in its ability to provide market facing underwriting services to clients on our platform and Steve Musicant has an excellent underwriting track record. We view this as the next generation in casualty underwriting and a new chapter in convergence products expanding outside of the property catastrophe markets.”

The first asset manager-sponsored reinsurer to be launched on the CRS platform intends to combine the casualty reinsurance underwriting expertise of CRS with an actively managed investment portfolio.

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