Securing alternative financial solutions.
Our acquisitions of both Hexagon and Kane’s ILS and structured transaction administration services put Artex at the forefront of this sector. Hexagon is widely recognized for its European ILS expertise, while Kane has focused primarily on US-based risks. Now this combination firmly establishes Artex as a leading global ILS services provider with scale, depth and diversity that few, if any, can match.
Insurance-linked securities (ILS) are financial instruments whose values are driven by insurance loss events. They encompass catastrophe (CAT) bonds and other forms of risk-linked securitization. Today they represent an industry with tens of billions of assets from capital investors at risk from catastrophic losses.
The Artex team focuses on facilitating two main types of insurance-linked securities transactions: CAT bond special purpose vehicles (SPVs) and collateralized reinsurance.
CAT bonds provide reinsurance for high-severity/low-probability and other uncontrollable events. They are grouped by their level of risk and sold in tranches, offering different classes of bond to investors with different risk appetites.
Another popular ILS solution is the facilitation of collateralized reinsurance transactions. Collateralized reinsurance has experienced significant growth in the last decade, with Artex being a major market participant facilitating billions of USD transactions through our SAC/PCC companies.
Investors in ILS funds, pension funds and others, often seek to achieve higher returns and/or market diversification than is currently available in the CAT bond market.