Press Releases: Quote from Benfield Press Release May 27th, 2008
Quote from Benfield Press Release May 27th, 2008
Benfield Group Limited ("Benfield" or "the Group"), the world's leading independent reinsurance and risk intermediary, today announces that it has made a cash investment of US$50 million into Juniperus Insurance Opportunity Fund ("the Fund") which will be managed by Juniperus Capital Limited ("JCL"). Benfield holds a significant shareholding in JCL having acquired shares at nominal value by way of a US$6,588 investment. Benfield has also committed to provide up to US$2 million in working capital to JCL. Other substantial investors in the Fund include Transatlantic Re and JCL management.
JCL, which launched today, is a new investment management company that will manage third party funds focused on the collateralized reinsurance and Insurance Linked Securities ("ILS") markets.
Grahame Chilton, Chief Executive of Benfield, commented, "Benfield is at the forefront of the converging reinsurance and capital markets. In addition to advising on the formation of new risk taking entities such as JCL and its affiliates, Benfield Advisory ("BA"), our specialist corporate finance and advisory business, advises on insurance and reinsurance M&A and provides cedants with direct access to hedge funds, pension funds, banks and other non-traditional investors. BA has advised on many start up insurance and reinsurance companies including Lancashire Insurance, Montpelier Re and other vehicles, and has also advised on the placing of billions of dollars of catastrophe risk in the capital markets in recent years, either through the formation of broadly syndicated risk transfer vehicles such as Starbound I and Starbound II or directly with capital markets investors. Our investment in this Fund is a logical next step in this expanding marketplace and I am delighted at our involvement in this initiative."
Rob Bredahl, Global Head of BA, commented, "The convergence of the (re)insurance and capital markets is being driven by (re)insurance companies seeking to access different forms of capital and innovative risk transfer techniques and investors increasingly attracted to the high yielding, non-correlated nature of catastrophe-type risk. Consequently, the market for ILS, the term given to the form of insurance risk distributed to capital market investors, has grown significantly in recent years. Benfield expects this growth to continue going forward, with ILS becoming an increasingly important market over time."
JCL, which launched today, is a new investment management company that will manage third party funds focused on the collateralized reinsurance and Insurance Linked Securities ("ILS") markets.
Grahame Chilton, Chief Executive of Benfield, commented, "Benfield is at the forefront of the converging reinsurance and capital markets. In addition to advising on the formation of new risk taking entities such as JCL and its affiliates, Benfield Advisory ("BA"), our specialist corporate finance and advisory business, advises on insurance and reinsurance M&A and provides cedants with direct access to hedge funds, pension funds, banks and other non-traditional investors. BA has advised on many start up insurance and reinsurance companies including Lancashire Insurance, Montpelier Re and other vehicles, and has also advised on the placing of billions of dollars of catastrophe risk in the capital markets in recent years, either through the formation of broadly syndicated risk transfer vehicles such as Starbound I and Starbound II or directly with capital markets investors. Our investment in this Fund is a logical next step in this expanding marketplace and I am delighted at our involvement in this initiative."
Rob Bredahl, Global Head of BA, commented, "The convergence of the (re)insurance and capital markets is being driven by (re)insurance companies seeking to access different forms of capital and innovative risk transfer techniques and investors increasingly attracted to the high yielding, non-correlated nature of catastrophe-type risk. Consequently, the market for ILS, the term given to the form of insurance risk distributed to capital market investors, has grown significantly in recent years. Benfield expects this growth to continue going forward, with ILS becoming an increasingly important market over time."