Vesttoo and Corinthian Re Launch VESCOR, a Partnership Driving Investment-Grade Rated Debt Structures Over Non-Catastrophe Insurance Liabilities
TEL AVIV, Israel, Feb. 9, 2022 – Vesttoo, a leading AI-based global alternative risk transfer and investment platform, announced today the launch of VESCOR, a strategic partnership with Corinthian Re, that will offer the world’s first non-catastrophe insurance investment-grade rated feeder fund. The new partnership will offer institutional investors rated notes securitizing dozens of underlying P&C reinsurance transactions. The first note issued will cover over $250 million in Gross Written Premiums (GWP), with an aim of covering $2 billion GWP in subsequently issued notes. The partnership is targeting its initial investment-grade rating for issued notes by one of the world’s leading rating agencies.
“This is a first-of-its-kind partnership - offering investors significant investment-grade returns together with uncorrelated diversification”, said Yaniv Bertele, CEO and Co-Founder of Vesttoo. “We are leveraging Corinthian’s vast experience and reputation in the reinsurance and alternative risk transfer markets and combining it with Vesttoo’s tech-enabled modeling and financial engineering. It’s a unique and innovative opportunity for investors to seize attractive risk-adjusted returns.”
“We look forward to scaling up and expanding our unique underwriting product that has a proven history of providing an efficient path for investors seeking attractive reinsurance opportunities”, said Christopher Collins, Managing Director of Corinthian. “We’re excited to have our history and experience in utilizing risk mitigation techniques to build a diverse portfolio for non-CAT reinsurance, to be validated and enhanced by Vesttoo’s impressive AI stochastic projection and innovative risk modeling. We are proud to be a part of VESCOR in leading the way for institutional investors to participate in this highly desirable investment sector.”
Corinthian will be responsible for ongoing identification, structuring and managing of the diversified underwriting portfolio, supported by Vesttoo’s AI-powered technology, modeling and financial engineering, with several banks leading the transaction placements. Each of the tech-enabled transactions will include an Aggregate Stop Loss (ASL) on top of the Quota Share (QS) layer in order to maximize ratings and protect returns. This will be the first-ever investment instrument that includes both QS and ASL layers, essentially reinventing the traditional “sidecar” structure.
Vesttoo’s proprietary AI-based financial engineering will work closely with the rating agency, ensuring that the level of collateralization and probability of exhaustion are within the rating’s tolerance. Each note will meet the specific rating requirements associated with insurance industry standards.
Vesttoo is the world’s first marketplace for Life and P&C insurance-based risk transfer and investments. Our proprietary AI-based technology facilitates risk transfer between insurance companies and institutional investors, providing insurance-linked investments to asset managers of all types while enhancing risk transfer and liquidity in the Life and P&C insurance markets.
About Corinthian Re
The Corinthian family of companies are a group of collateralized specialty reinsurance companies and transformers that have been providing access to non-correlated risk in non-CAT P&C portfolios since 2012. Through the cultivation of strong relationships within the reinsurance markets, strict underwriting discipline that focuses on underserviced risk markets, a focus on true vertical alignment of risk sharing for all placement participants and a streamlined operating structure with below market overhead rates, Corinthian has built a reputation as an excellent business partner to carriers, brokers and MGAs alike.
Liran Grunhaus, head of marketing