Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has become the latest company to establish a collateralized insurer class of company in Bermuda, named Arbol Re Ltd.
The Bermuda domiciled and regulated collateralized insurer class of company has become an increasingly popular structure for those looking to connect investors with sources of insurance or reinsurance risk-linked return.
Arbol Re Ltd. has now been registered by the Bermuda Monetary Authority (BMA) and for Arbol this now provides a platform through which it can continue to underwrite its parametric risks, but they can be backed by capacity sourced from the capital markets and also fully-collateralized.
Hong Guo, Arbol’s EVP & chief insurance officer, explained to Artemis, “Arbol Re Ltd. represents an evolution in Arbol’s ability to facilitate reinsurance transactions, with a particular emphasis on parametric reinsurance deals involving the capital markets.
“As a Collateralized Insurer, Arbol Re’s role is not to assume risk but to enable transactions that are entirely collateralized.
“This ensures a secure, efficient platform for both Arbol and the capital markets to manage and…
