Bermudian-based reinsurer Itasca Re will be providing a reinsurance solution for Turkish Airlines.

The reinsurer announced today that it will be reinsuring aircraft non-payment insurance for the financial leasing of three A321neo aircraft for Turkish Airlines.

Itasca Re chief executive officer Kostya Zolotusky was pleased to be laying the foundation for a long-term relationship with the airline, which has more than 400 planes.

“We believe that our product will help Turkish Airlines advance its long-term fleet and business strategies by transferring non-payment risk away from its lenders,” Mr Zolotusky said.

A321neos have the longest aircraft fuselages in the Airbus fleet of commercial offerings, and are 20 per cent more fuel efficient per passenger than other planes.

Turkish Airlines said Itasca Re's reinsurance product offered them a financing edge while it continued building its fleet with young, modern aircraft.

Global investment manager Castlelake launched Itasca Re in January to offer insurance financing solutions to buyers and owners of commercial aircraft assets.

Mr Zolotusky most recently led the Integrated finance linked insurance division of Piiq Risk Partners.

The solutions provided by Itasca Re attempt to enable competitive financing rates by transferring the non-payment risk traditionally held by financiers to third parties via an insurance policy issued by Starr Insurance Companies that is reinsured by Itasca Re and other potential third-party reinsurers.