New Lloyd’s Insurer Inigo Issues Inaugural Catastrophe Bond

Inigo Ltd., the new Lloyd’s insurer, has entered the catastrophe bond market for the first time, less than 18 months after the firm began writing its portfolio of specialty insurance and reinsurance.

Montoya Re, launched on April 1, is a $115 million transaction covering earthquake and windstorm risk in the U.S., Canada and Japan. The risk period will be three years and the coupon is 6.75% above money market fund returns. The bond was structured by Aon Securities and fronted by Hannover Re.

“Inigo has made extensive use of alternative sources of reinsurance capital since our inception. By transferring part of our risk to capital markets as a catastrophe bond, we have further expanded the investor base that is able to access our portfolio of insurance and reinsurance,” commented Adam Alvarez, head of Insight at Inigo.

“We are pleased to have locked in such a significant part of our hedging strategy for three years during a turbulent time in the markets. By further strengthening our own capital position, we have ensured that we will be able to grow with our clients and offer them the security that they need to manage their most complex risks,” Alvarez added.

Inigo is focused on 10 re/insurance lines of business working exclusively through the broker intermediary market. Inigo is the lead underwriter for some of the largest commercial and industrial companies across the globe and provides meaningful reinsurance capacity to the world’s leading insurers.

Last month Inigo submitted its first set of syndicate accounts to Lloyd’s of London. In its inaugural year, on a GAAP basis, Inigo recorded gross written premium of $411 million, outperforming new entrants to Lloyd’s with entirely new portfolios. Ultimate premium for the 2021 underwriting year is expected to exceed $430 million, with a controlled premium in excess of $450m. Inigo previously announced its intention to nearly double its underwriting to a controlled premium in excess of $850 million for 2022.

In total Inigo welcomed 119 new employees in 2021, which included a full contingent of underwriters and claims teams in its core areas. Inigo also formed Inigo Insight, a team of data scientists from a variety of backgrounds who are building the foundations for an ever greater understanding of risk, the company said in a statement.

Inigo was founded in 2020, with funding from both blue-chip international investors and the management team, subsequently acquiring its own managing agent (Inigo Managing Agent Ltd.). Inigo underwrites exclusively on Lloyd’s paper. (AM Best A / S&P A+) through Lloyd’s Syndicate IGO 130.

Source: Inigo Ltd.

Topics Catastrophe Carriers Excess Surplus Lloyd's