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Hiscox ILS arm sets up new reinsurer

Hiscox: Expanding third-party capital efforts

The Kiskadee arm of Bermuda-based Hiscox has launched a new reinsurer.

Cardinal Re, which is based in Bermuda, will operate as a special purpose insurer designed to turn collateralised insurance and reinsurance risk into a security aimed at capital market investors.

The new venture takes Kiskadee Investment Managers’ total assets under management to more than $600 million.

Hiscox Re CEO Jeremy Pinchin said: “The launch of Cardinal Re is the latest development in our Kiskadee offering and takes assets under management to $600 million in only its second year of operation.

“Cardinal Re with its nimble and flexible segregated cell structure, can respond quickly and is an effective way for completing transactional deals where speed to market is critical.

“It offers additional opportunities for both investors cedants alike to benefit from our growing Kiskadee family of insurance-linked products and reflects the growing confidence from investors to take both insurance and reinsurance risks.”

Cardinal Re launched its first its first external investor cell in July, which changed a Hiscox Re portfolio of insurance risk into a transaction supported by $55 million of external capital.

The new arm adds more flexibility to Hiscox’s use of alternative capacity for insurance or reinsurance risk, providing investors with unique market access to risk sourced from the Hiscox Group.