Global legacy specialist Enstar Group has partnered with Artex Capital Solutions, a provider of insurance-linked securities (ILS) insurance management and alternative risk solutions, to provide investors with a streamlined exit solution for the Artex ILS transformation vehicle, offering investors a diverse range of forward-looking and retrospective exit products through Enstar’s Cavello Bay Reinsurance Limited subsidiary.
The offering is designed to enhance liquidity, flexibility and execution certainty for investors in Artex-controlled ILS Transformation Vehicles and combines Enstar’s legacy and risk management capabilities with Artex’s expertise in advising, structuring and managing ILS transactions through its Transformation Vehicles.
The new suite of solutions is designed to support investors throughout the entire investment cycle, with the companies explaining that the intended solution through forward exit options will provide liquidity at predetermined terms.
At the same time, retroactive solutions, including novations, loss portfolio transfers, adverse development protection and the purchase of investor interests, are designed to enable the finalization of existing risk exposures.
Ultimately, these exit options are designed to accelerate the release of capital, reduce trapped capital, and provide balance sheet finality, thereby mitigating the risk of loss contagion.
David Ni, chief strategy officer at Enstar, commented: “Investors are increasingly looking for greater certainty and flexibility in managing risk exposures.
“We are excited to partner with Artex to directly address this need, leveraging our experience in the ILS market and our track record of building innovative capital release and risk management solutions.”
Kathleen Faries, CEO of Artex Capital Solutions, added: “Partnering with Enstar is an important step in our mission to provide innovative and customized solutions to 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 provide investors with an efficient way to free up capital, stabilize earnings and refocus on core priorities.”
