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MultiStrat Re: Platform concept helps asset managers raise assets as permanent capital through reinsurance
Jun 10 20141 Comment
Bob Forness is CEO of MultiStrat Re, a Bermuda based specialist in writing reinsurance and also setting up asset managers who want to sponsor their own reinsurance companies. Mr. Forness lays out the argument why asset managers sponsor a reinsurance company, primarily to raise assets and secure a source of permanent capital. He explains the concept of “premium float” -- reinsurance premiums that are the source of long-term capital and sticks with managers even in market down years. The public listing of the company also provides advantages for the manager and liquidity for investors.
He dispels many of the longstanding preconceptions about the supposed dangers of reinsurance and explains how the types of reinsurance that MultiStrat Re writes specifically limit the downside and fit in with an asset manager’s risk tolerance. Mr. Forness also explains why the challenges the traditional reinsurance industry are facing right now makes the launch of a modern reinsurance vehicle backed by an active asset manager very appealing.
In this Opalesque.TV video profile, learn about:
MultiStrat Re Customizing low-risk reinsurance vehicles for asset managers to obtain permanent capital
Exploring low-risk reinsurance contracts that limit downside and generate “Premium Float” for asset managers
The value, execution, and flexibility asset managers find in sponsoring a reinsurance company on the MultiStrat Re platform
Implementation process and simplifying the complexities of reinsurance
Why traditional reinsurance environment is struggling, opening the door for asset managers despite longstanding preconceptions
Bob Forness is CEO of MultiStrat Re, a Bermuda based specialist in writing reinsurance and also setting up asset managers who want to sponsor their own reinsurance companies. Mr. Forness lays out the argument why asset managers sponsor a reinsurance company, primarily to raise assets and secure a source of permanent capital. He explains the concept of “premium float” -- reinsurance premiums that are the source of long-term capital and sticks with managers even in market down years. The public listing of the company also provides advantages f ...more
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