This page contains a Flash digital edition of a book.
News


growing number of smaller insurers and managing general agents (MGAs) are


seeking partnerships with alternative capital providers via structures such as sidecars—but they need to offer something unique yet reliable if they are to succeed in securing such partnerships. That is the view of Martin Davies, chief


offer access to a different type of business and to be able to deliver on that. “The last thing an asset wants is to raise


manager


executive of AHJ Capital Markets, who joined the broker a year ago to establish its capital markets presence. He told Monte Carlo Today that he is dealing with a number of smaller players seeking a presence in this market. “We are seeking capacity for a number of companies at the moment wanting to launch sidecars,” he said. “They want to know whether capacity is available in the capital markets, and the answer is certainly: yes. “But we also stress that it is not a limitless pool. Most investors interested in this space are already working with bigger players so they need to offer something different. They need to


funds but then not actually be able to deploy them. They want to see something unique: an exceptional


underwriting


record or a portfolio mix that offers them diversity, perhaps. They need to offer edge.” The idea of MGAs accessing capital markets is not


the


WEDNESDAYAD PrOOF 16.09.15


More MGAs seek capital partners on sidecars A


grow and investors are that open


to this if it is the right type of business. Many are pretty full on their US property-catastrophe allocations and that means they are seeking new areas to move into.


“They also need guarantees they can deploy their


Martin Davies


unique. MGA Tamesis Dual is partnered with Credit Suisse Asset Management, for example. Nevertheless, such arrangements have been rare, partly because alternative capital prefers to work with short-tail business. “More and more MGAs are seeking such arrangements,” Davies said. “It allows them to


capital. The challenge for us is finding the right risks and matching them with the right investors. But you are certainly beginning to see this dynamic


move down the spectrum.” Davies added that he is also working on


other deals whereby smaller players are looking to


raise equity or capital in another way,


something that has been driven by Solvency II. “There are some types of subordinated debt that work well under Solvency II,” he said. n


Weston: for when the wind blows


Weston Insurance Company is a focused wind-only property insurance specialist, providing coverage for losses from the perils of windstorm or hail. Based in Coral Gables, Florida, Weston is dedicated to helping businesses and individuals achieve financial security by providing access to cost-effective coverage, and responsive, high-quality client service. Building on our executive team’s nearly 100 years of collective experience in insurance and reinsurance, Weston strives to offer the most consistent and cost-effective wind-only insurance protection available in the markets we serve.


For more information,


please visit us online at www.weston-ins.com or call 1.(888).800.5002


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28