MultiStrat highlights CLS business as it expands offering

Bermuda-based total-return reinsurer and servicing company MultiStrat has completed another casualty linked security (CLS) transaction of high frequency low-severity casualty business, as it expands its CLS offering.

According to the company the latest transaction was backed by a $14 billion global alternative asset manager. During the program, the investor will invest $28 million in a Bermuda based segregated account to support total liabilities associated with $160 million in estimated written premium.

Over the past year MultiStrat said that it has completed multiple CLS transactions with estimated premiums of $230 million and total capital investment of $60 million.

Investors in MultiStrat’s CLS transactions include alternative asset managers, specialized insurance funds, and established reinsurers. Classes of business covered to date include workers’ compensation and related healthcare liability, employers’ liability, professional liability and personal auto liability.

“We are pleased to expand our CLS offering with world class backers to cover both retrospective and prospective casualty reinsurance transactions,” said Bob Forness, CEO of MultiStrat. “Delivering reinsurance opportunities to investors in a competitive market demonstrates the potential for CLS in the broader markets.”