RISC Bermuda Opens New Offices

Risk Intermediation Structured Capital (Bermuda) Ltd. (RISC Bermuda) announced the opening of its new office in the Continental Building, 25 Church Street, Hamilton, Bermuda.

“RISC Bermuda was incorporated in June 2004 as a specialist insurance broker to develop effective insurance solutions for the aircraft risk management and financing markets,” the bulletin noted. “RISC Bermuda combines highly sophisticated modeling capabilities with insurance and capital markets expertise to provide a unique market resource for the complex risk transfer and financing challenges of the aircraft industry.”

The company said its “current pipeline covers client portfolios with aggregate risk approaching $10 billion. Its activities include:
— Modeling and arranging capacity for a $2 billion pool to write ‘BB/Ba’ tranches of aircraft portfolio risks;
— Developing, in conjunction with its affiliate AircraftRisk.com and a leading investment bank, a unique capital markets ‘derivative’ residual value cover – the ‘Reference Aircraft Protection’ (RAP). By eliminating a significant source of moral hazard in connection with market value discovery, re-marketing issues, illiquidity at point of sale and return conditions, the RAP risk will be available for distribution to a far wider and deeper capital markets investment pool;
— Developing traditional insurance market capacity for indemnity residual value covers;
— Acting as general broker of complex risks on behalf of its clients.

CEODerrell Hendrix indicated that the company, “is being positioned to become the world’s leading broker and advisor on risk transfer in connection with aircraft and other large operating asset finance risks. By basing its services on stochastic modeling techniques and on industry partnerships for asset and re- marketing management, we aim to improve the transparency and ultimately the liquidity of the aircraft risk transfer and financing market.”