Castlelake Launches Bermuda Reinsurer, Itasca Re, for Aircraft Assets

U.S.-based alternative investment manager Castlelake, L.P. announced the creation of a Bermuda-licensed reinsurance company, Itasca Re Limited, to offer insurance financing to buyers and owners of commercial aircraft assets.

Itasca Re’s products enable competitive financing rates for aircraft asset buyers by transferring the non-payment risk traditionally held by financiers to third parties via an insurance policy issued by Starr Insurance Cos. that is reinsured by Itasca Re and other potential third-party reinsurers under a dedicated reinsurance agreement.

Itasca Re will be led by aviation industry veteran Kostya Zolotusky, who most recently led the Integrated Finance Linked Insurance division of Piiq Risk Partners Ltd., an aviation insurance broker associated with The Ardonagh Group. Piiq will provide exclusive brokerage services to Starr and Itasca Re.

Itasca Re said it expects to provide various insurance-backed risk products in the aviation finance sector, including servicing airlines and operating lessors seeking to purchase or refinance new or vintage aircraft assets as well as financiers seeking alternative syndication or de-risking options for their loan portfolios.

Castlelake has been a capital provider to aviation asset owners and lessees since its inception, having invested more than $17 billion and acquired more than 650 aircraft. Founded in 2005, Castlelake manages approximately $20 billion of assets.

Starr Insurance Cos. through its operating insurance companies, provides property, casualty, and accident and health insurance products as well as a range of specialty coverages including aviation, marine, energy and excess casualty insurance.

Topics Aviation Reinsurance