Humboldt Re Ltd., one of the two Guernsey based, Credit Suisse Insurance-Linked Strategies supported rated reinsurance carriers, has now been sold to European property and casualty (P&C) run-off specialist company Marco Capital Holdings Limited., which would allow the main shareholder of Humboldt Re, which we assume was certain funds under the management of the Credit Suisse ILS team, or an entity related to the wider Credit Suisse group, to recognise the value locked up in the rated reinsurance company and its portfolio.Then as we explained last week, .Now, Marco Capital has announced the acquisition of Guernsey based reinsurance company Humboldt Re Limited, having received regulatory approval from the Guernsey Financial Services Commission and with the deal now completed.

Simon Minshall, CEO of Marco, commented, “I am delighted to announce the acquisition of Humboldt Re.Clients engage in run-off transactions for a variety of reasons – providing customized strategic solutions is a fundamental service Marco offers and is a core pillar in Marco’s strategy.This transaction demonstrates our structuring capabilities and key proposition in offering the best solution for our clients.” This sale will allow remaining capital to be unlocked and flow to the benefit of any investors backing the funds or positions that underpinned Humboldt Re.

Humboldt Re and another Credit Suisse ILS linked reinsurance company Kelvin Re, were both being .Humboldt Re and Kelvin Re both took their financial support from insurance-linked securities (ILS) investors and funds under the management of Credit Suisse Asset Management’s specialist ILS investment unit.Humboldt Re was backed by capital from some of the insurance-linked securities (ILS) funds managed by Credit Suisse Asset Management (CSAM), while Kelvin Re was solely backed by investments made by the Abu Dhabi Investment Council, a sovereign wealth investor.

.So it’s anticipated that this specific pension fund may be one of the beneficiaries of this sale of the rated reinsurer to run-off specialist Marco Capital.This sale of Humboldt Re as an entire entity will unlock trapped value for investors with exposure to the reinsurer, while also allowing this chapter to be finalised for Credit Suisse.

This is Marco’s third transaction in the space of nine months and the company said the acquisition of Humboldt Re will significantly increase its balance-sheet size.———————————————————————.All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.