Alternative risk venture targets noncatastrophe property risks
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Vario Partners L.L.P. and Guy Carpenter & Co. L.L.C. have launched a joint venture to cover property/casualty insurers’ risks outside of catastrophes with a new alternative risk transfer vehicle.
The vehicle is Vario Global Capital Ltd., which will cover property/casualty risks with the exception of catastrophes.
The catastrophe market has become saturated and this is a new method for investors to pursue, unlike traditional insurance-linked securities, said a spokeswoman for London-based Vario Partners.
“Our strength lies in a new, proprietary modeling approach which allows us to structure and analyze nonpeak risks, and even whole insurance portfolios, to deliver reliable return projections for investors,” James McPherson, a partner at Vario Partners and director at Vario Global Capital, said Thursday in a statement.
“We anticipate significant demand, particularly in nonpeak risk lines, for the simplified access to the capital markets that Vario Global Capital will deliver,” Eric Paire, head of strategic advisory for Europe, the Middle East and Africa at Guy Carpenter, a unit of Marsh & McLennan Cos. Inc., and a director of Vario Global, said in the statement.
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