AXA XL ILS to use Clearwater Analytics for investment accounting

AXA XL ILS Capital Management, the alternative reinsurance capital division of the commercial insurance and reinsurance unit of the AXA Group, is set to use Clearwater Analytics as a provider of investment accounting services.

With over $1 billion in insurance-linked assets under management in a range of alternative reinsurance capital structures and funds, AXA XL ILS Capital Management helps institutional investors to access insurance and reinsurance risk premium opportunities in co-participation with AXA XL.

Today, Clearwater Analytics said that AXA XL’s alternative capital team has selected the company to provide strategic support for a portion of its investment portfolio.

Having assessed other service providers, the AXA XL alternative capital team decided on Clearwater for its ability to meet their complex accounting book of record and regulatory requirements, including customised general ledger entries, as well as its accuracy and reliability, the company said.

“We’re incredibly excited to welcome AXA XL as a Clearwater client,” said Keith Viverito, General Manager of EMEA and APAC at Clearwater Analytics.

“Our mission is to deliver cutting-edge solutions that radically simplify investment management and accounting workflows and reporting. Our solutions provide our clients with best-in-class investment analytics and a single source of truth for their investment portfolios across all asset classes. These solutions help them achieve their strategic growth and investment objectives and navigate a constantly evolving regulatory landscape.”

The need for those offering ILS investment opportunities to have access to effective accounting tools is clear, given the multiple investors backing ILS investment strategies, the different jurisdictions traded in and that investments are offered to, as well as the different financial reporting needs of ILS structures.

It’s an often overlooked area, but one that ILS managers can spend relatively significant sums to ensure they have an institutional quality accounting system and service, which can help in giving end-investors greater comfort in their offering.