Humboldt Re becomes Guernsey's latest commercial reinsurer

26 October 2015

Humboldt Re Limited has become Guernsey latest reinsurance vehicle.

Launched by ILS investment manager Credit Suisse Asset Management, Humboldt Re is a privately owned start-up entity based in Guernsey that provides mainly short-tail property and specialty lines reinsurance. With an initial capital outlay of CHF 500 million, Humboldt Re intends to build a portfolio of approximately CHF 140 million gross written premiums, with globally diversified reinsurance exposures focused on property catastrophe.

As with Kelvin Re, Humboldt Re will be managed Aon Insurance Managers (Guernsey) Limited.

A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer rating of A- to Humboldt Re Limited.

In assigning its ratings to Humboldt Re, A.M. Best said: "The ratings reflect Humboldt Re's diversified projected underwriting exposure within the natural catastrophe spectrum, expected strong risk-adjusted capitalisation, a risk management framework adequate to its intended business profile and its experienced management. Offsetting rating factors include the challenges related to the immediate execution of its proposed business plan in current market conditions."

Humboldt Re's board of directors is largely composed of individuals with experience in reinsurance, while the proposed investment strategy demonstrates, in A.M. Best's view, a conservative approach toward asset allocation, mainly focused on direct exposures to highly liquid fixed income paper with excellent credit ratings.

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