Enstar and Artex Capital Solutions launch ILS exit strategy via Cavello Bay Re
Enstar Group and Artex Capital Solutions have partnered to launch a strategy providing exit solutions for insurance-linked securities (ILS) vehicles, leveraging Cavello Bay Reinsurance to deliver a range of options aimed at releasing trapped capital and improving investor liquidity.
The arrangement will provide investors access to a diversified suite of prospective and retrospective exit products through Cavello Bay Reinsurance, Enstar’s wholly owned subsidiary.
The players report that the suite of solutions is designed to support investors across the investment cycle. Prospective solutions, delivered via forward exit options, provide future liquidity on pre-defined terms.
Retrospective solutions, including novations, loss portfolio transfers, adverse development covers and purchases of investor interests, offer finality on existing exposures.
Together, these options aim to accelerate capital release, reduce trapped capital and support balance sheet finality, limiting loss-creep risk.
David Ni (pictured left), chief strategy officer at Enstar, said: “Investors are increasingly seeking greater certainty and flexibility in how they manage their exposures. We are thrilled to work with Artex to respond directly to that need, drawing on our experience in the ILS market and our track record of structuring innovative capital release and risk management solutions.”
Kathleen Faries 9pictured right), CEO at Artex Capital Solutions, added: “This collaboration with Enstar is a significant step in our mission to provide innovative and tailored solutions for our clients. By combining our expertise, we are creating a seamless and efficient process that will redefine exit solutions in the ILS market. Together, we are enabling an efficient way for investors to unlock capital, stabilise earnings, and refocus on core priorities."
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