Leadline a “natural evolution” to Ascot’s third-party capital management: Keith

Yesterday’s launch of Leadline Capital Partners represents a “natural evolution” to third-party reinsurance capital management activities at global re/insurer Ascot, Justin Keith, President and Chief Executive Officer of Ascot Bermuda Limited, told Artemis in an interview.

Yesterday, we revealed that Ascot had launched a new dedicated third-party capital management platform named Leadline Capital Partners.

It’s seen as a move to expand Ascot’s activities in the third-party and ILS capital management space, while also immediately bringing on new institutional investors to support it through a new collateralized reinsurance transaction.

Speaking with Artemis as the news was breaking, Justin Keith of Ascot Bermuda explained the rationale behind the launch of Leadline Capital Partners.

“The establishment of Leadline is a natural evolution to the 3rd party capital management efforts of the Ascot Group. This new operating unit, which has been formed to consolidate third party capital capabilities and solutions under a single new brand, aligns with Ascot’s heritage and long track record as a market leading underwriter.

“Our strategy involves providing a broad base of offerings that are attractive to both institutional investors and clients in the third-party capital and insurance-linked securities sector, drawing on Ascot’s strong track record of underwriting expertise and returns,” Keith said.

Continuing to explain that, “As respects the new brand, one of the first and most valuable inventions in navigation was the Leadline. It was used to measure the depth of water and determine characteristics of the sea floor. Interestingly, its design hasn’t changed much in thousands of years.

“Similarly, Ascot relies on their deep history of innovation and problem solving to navigate challenges and explore opportunities that we believe are the fundamental principles of sound underwriting. These principles, which have also been consistent over time, are what we bring to our investors via Leadline.”

Keith said the timing of the launch of Leadline “represents an important evolution in Ascot’s capital partnership business and a recent expansion of our investor base.”

But clarified that, “The timing of our launch is not reflective of a particular view of market conditions – our proven track record of cycle management will continue to guide with whom we partner and how we deploy all forms of capital available to us.”

The opportunity though is clear at this time, with reinsurance returns elevated and contract terms providing a much more distinct separation of how losses fall, between the primary and reinsurance layers of the market, investor interest is rising.

Keith said that Ascot feels well-positioned and that Leadline means it can do more in the third-party capital space.

“Ascot is well placed to expand its partnership with ILS investors given its proven underwriting track record and cycle management, superior market reputation, access to unique portfolios of risk as well as its experience managing existing third-party capital,” Keith told us.

Going on to say that, “Ascot believes that through Leadline Capital Partners, and its dedicated and integrated resources, that we will increase our ability to offer solutions to our trading partners while offering third parties a variety of attractive risk/return opportunities that sit alongside Ascot’s proven underwriting team.”

Summing up, Keith highlighted the desire at Ascot to expand its partnership with third-party capital and ILS investors.

“Risk capital continues to be attracted to partnering with leading (re)insurance companies due to many reasons, including non-correlated returns associated with catastrophe risk and attractive risk adjusted returns,” Keith said.

Adding, “Ascot is well placed to expand its partnership with ILS investors given its underwriting track record, reputation, access to unique portfolios of risk as well as its experience managing existing third-party capital.”

Also read: Leadline Capital Partners launched by Ascot as dedicated third-party capital unit.