22nd Jan 2014 17:48
LONDON (Alliance News) - Lancashire Holdings Ltd Wednesday said its third party capital management unit has underwritten its first tranche of multi-class reinsurance contracts with combined aggregate limits in excess of USD250 million.
Lancashire, which underwrites insurance and reinsurance, said its 87.43%-owned subsidiary, Kinesis Capital Management, commenced to underwrite the contracts at the start of January, coinciding with policy renewals season.
Kinesis Capital Management underwrites on behalf of Kinesis Re. Lancashire incorporated its Kinesis division in the second-quarter of 2013 with the intention of looking for initial funding of between USD300-500 million.
The USD250 million in contracts were the first to be underwritten by Kinesis Re since parent company Kinesis Holdings raised funds from a number of investors. Lancashire contributed 10% of the capital in that fundraising.
Goldman Sachs worked with Lancashire to structure the Kinesis vehicles, which allow investors access to the reinsurance market.
Kinesis Capital Management was established by Lancashire during the second-quarter of 2013 and manages third party capital to be deployed in Kinesis Re, which was established by Lancashire at the same time.
Lancashire Holdings shares Wednesday closed at 764.00 pence, up 4.00 pence, or 0.5%.
By Samuel Agini; [email protected]; @samuelagini
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Lancashire Holdings