Liberty Mutual reinsures via Limestone Re ILS deal


Segregated account company Limestone Re has issued $278 million of participating notes to investors in a private placement transaction with Liberty Mutual.

The transaction provides collateralised reinsurance for Liberty Mutual's US property catastrophe programme, as well as its US homeowners and global property reinsurance risk.

James Slaughter, senior vice president and chief underwriting officer of Liberty Mutual's Global Risk Solutions strategic business unit said: “Reinsurance through the Limestone Re platform forms an integral component of Liberty Mutual's long-term strategy for accessing third-party capital. Liberty Mutual is able to leverage our global distribution platform to provide, through reinsurance with the Limestone Re platform, insurance-linked securities (ILS) investors diversified pools of risk while concurrently bringing investors as close as possible to the underlying insurance risks.

“This latest transaction brings the total Limestone reinsurance collateralized capacity placed with ILS investors to nearly $700 million, demonstrating our commitment to the ILS market."

According to Matthew Moore, president, Liberty Specialty Markets, investors responded positively to the Limestone Re offering, saying: “We're pleased with the overwhelmingly positive market reception and look to continue to broaden our partnerships with ILS investors through future transactions.”

Liberty Mutual, Limestone Re, ILS, Collateralised reinsurance, Property catastrophe, North America, Bermuda

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