Liberty Mutual Completes $150M Limestone Re Sidecar Transaction

U.S primary insurer Liberty Mutual has secured $150 million of collateralized reinsurance for its U.S property catastrophe program through a new transaction through Limestone Re, its Bermuda domiciled segregated account company.

Source: Reinsurance News | Published on January 10, 2019

Liberty Mutual net income Q1

Liberty Mutual said the deal, which is comprised of $58 million of Bermuda Stock Exchange-listed 2019-1 Notes, will also provide collateralised reinsurance for its U.S homeowners and global property reinsurance risk.

According to Arno Gartzke, Vice President and Director of ILS, Liberty Mutual, the transaction successfully replaced the expiring Limestone Re 2016-1 placement.

“Liberty Mutual remains committed to the ILS market and the continued support from our key partners, despite challenging market conditions, reaffirms the quality of risks which investors can access via Limestone Re.”

James Slaughter, Senior Vice President and Chief Underwriting Officer of Liberty Mutual’s Global Risk Solutions strategic business unit added, “The Limestone Re platform continues to be an integral component of Liberty Mutual’s strategy for accessing third-party capital.”

“Liberty Mutual’s global reach makes us uniquely positioned to provide insurance-linked securities (ILS) investors diversified pools of risk while bringing them as close as possible to the underlying insurance risks.