Liberty Mutual raises $240m in ILS and private placements


Liberty Mutual has unlocked around $240 million of reinsurance capacity for its US property catastrophe program and global treaty property reinsurance business via an issue of insurance linked securities (ILS) on its Limestone Re platform.

Liberty Mutual shrugged off the challenging conditions in the ILS market to issue around $135 million of 2019-2 Notes on the Bermuda Stock Exchange through Limestone Re, a Bermuda-domiciled segregated account company. The remaining $105 million came via private placements.

The transaction replaced the expiring Limestone Re 2018-1 placement, with an overall lower target size due to a revised portfolio composition.

James Slaughter, executive vice president and chief underwriting officer of Liberty Mutual's global risk solutions business, said: "Third-party capital will continue to be a growing presence in the re/insurance market, and the Limestone Re platform remains an integral component of Liberty Mutual's strategy for accessing this capital."

Arno Gartzke, vice president and director of ILS at Liberty Mutual, welcomed the strong support of the company’s key capital markets partners. “The strong performance of previous Limestone Re placements relative to the broader ILS market through 2017 and 2018 is reflected in this solid base of support," he said.

Liberty Mutual, Limestone Re, James Slaughter, Arno Gartzke, Bermuda Stock Exchange

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