16 October 2014ILS

Bermudian ILS manager launches in Gibraltar

Bermuda-based insurance-linked securities (ILS) manager Horseshoe Group has launched operations in Gibraltar following approval of its licence.

Horseshoe said the formation of the Gibraltar business follows months of work alongside government officials, representatives of the FSC (Gibraltar’s insurance regulator), local service providers and a working group of ILS bankers, service providers, investors and sponsors put together by Horseshoe chief executive officer, Andre Perez in conjunction with HM Government of Gibraltar’s Ministry for Financial Services.

The working group assisted the FSC in finalising their ILS guidelines enabling Gibraltar to be open for ILS business.

Horseshoe Management (Gibraltar) is aimed at attracting European sponsors and cedants for ILS structures such as catastrophes bonds, sidecars and collateralised reinsurance transformers.

The group is currently recruiting talent based in Gibraltar to support its ILS activities there, while capitalising on the breadth of global resources throughout the group.

“The establishment of Horseshoe Management Gibraltar will now give us more flexibility to manage ILS transactions in either European domicile depending on the clients’ preference,” said Perez.

“At the moment, the ILS market is dominated by US wind and earthquake perils and for it to truly grow, it will have to not only expand the perils but also the geographical regions it covers. My sentiment is that a good percentage of the growth is going to come from Europe. This is why I am quite bullish about Gibraltar’s potential for ILS.”

Gibraltar’s Minister for Financial Services, Albert Isola MP, added: “I am delighted to welcome Horseshoe to Gibraltar following its regulatory approval by our Financial Services Commission. Andre and his team at Horseshoe have provided us with invaluable technical expertise and market knowledge together with the specialists in the working group that he coordinated and their decision to set up in Gibraltar is especially welcome.

“We are keen to establish Gibraltar as a European ILS jurisdiction and this is an important and significant next step.”

Perez added: “Gibraltar has a lot going for it as a suitable ILS jurisdiction, aside from being an EU domicile, it has now a strong ILS regulatory and tax framework, a good infrastructure, competent service providers, Protected Cell Company legislation and more importantly the strong commitment from both Government and the FSC to make Gibraltar a thriving ILS European domicile.

“We are excited to have established a presence in Gibraltar with Horseshoe Management Gibraltar and we look forward to working alongside the collective willingness of those in Gibraltar to make ILS a success on 'the Rock'”.