St Peter Port
08 August 2017
Reporter: Becky Butcher

‘First’ blockchain ILS deal done


Dom Re IC, the insurance-linked securities (ILS) reinsurance transformer and incorporated cell of Solidum Re ICC, has issued what it believes to be the first notes to be digitised on a private blockchain.

The ILSBlockchain has replaced the role of a traditional settlement system such as Euroclear or the Depository Trust Company for this note issue, according to Dom Re IC.

The incorporated cell issued $14.8 million in principal-at-risk, participating notes—an asset-backed securitisation of a reinsurance contract—to a total of six investors.

Solidum Re acted as the paying agent and common depository of the permanent global note, as well as the blockchain permission grantor and sponsor.

The investors subscribed for the notes, paying into a Guernsey trust for which Artex Risk Solutions acted as trustee.

On the issue date, the paying agent created cryptographically-certificated notes on the ILSBlockchain and then the investors were able to execute, peer-to-peer with the paying agent, delivery-vs-payment transactions to purchase the newly created notes.

Cedric Edmonds, director of Solidum Re, explained that Dom Re required an alternative to the traditional settlement system because it was becoming “increasingly difficult” to access efficiently for smaller private placement note issues. Mark Helyar, non-executive director of Solidum Re and of counsel at Bedell Cristin, said: “I am delighted that Solidum Re ICC has concluded this latest transaction. It is not an exaggeration to describe the new Dom Re IC structure as a ground breaking, global first, not only for the ILS sector, but for dematerialisation of listed securities generally.”

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
UK’s ILS legislation to be in place for January renewals
17 October 2017 | London | Reporter: Jenna Lomax
Malcolm Newman, CEO of Scor’s London hub and sponsor of the London Market Group’s (LMG) ILS Taskforce is “cognisant of the time pressures if ILS applications are to be made in time for 1 January renewals”
Centaur Fund Services adds ILS head
16 October 2017 | Bermuda | Reporter: Becky Butcher
Centaur Fund Services has appointed IC Condat as its head of insurance linked-securities (ILS), based in the firm’s Bermuda office
Roundstone and HUB team up on captive programme
16 October 2017 | Ohio | Reporter: Becky Butcher
Roundstone Management and HUB International have partnered up to create self-funded medical captive programmes
Sun Life and Pareto launch stop-loss group captive
13 October 2017 | Massachusetts | Reporter: Becky Butcher
Sun Life and Pareto Captive Services have teamed up to establish a new stop-loss group captive solution, Legend Re
DARAG names new CEO of its Italian operation
13 October 2017 | Milan | Reporter: Becky Butcher
European run-off insurance company DARAG has appointed Tullio Ferrucci as CEO of DARAG Italia, following the acquisition of ERGO Assicurazioni
Cybercrime losses set to increase, says cyber risk expert
12 October 2017 | London | Reporter: Becky Butcher
Losses from cybercrime are only likely to increase because of far-reaching global connectivity, warned James Trainor, Aon’s senior vice president of cyber solutions
Axial Benefits Group complete captive deal
12 October 2017 | Massachusetts | Reporter: Becky Butcher
Axial Benefits Group has completed a medical stop-loss transaction with QBE North America to enhance its healthcare purchasing coalition operations