Till Capital has retained MultiStrat Re to provide underwriting services and assist in the Company’s growth. Barriers to entry are a critical factor in limiting access to the reinsurance sector, often requiring start-up capital in excess of $250 million or more. Working within the MultiStrat Re platform the Company gains entry to the reinsurance market at an earlier stage with less upfront capital while providing the opportunity to grow its reinsurance business over time.
Multi-Srat Re Ltd. (MultiStrat Re)
MultiStrat Re is a privately held reinsurance company incorporated and licensed as a Class 3A insurer in Bermuda. Unique in its purpose and design, MultiStrat Re offers reinsurance clients cost-effective reinsurance capacity, while providing asset managers an efficient and scalable platform for launching reinsurance companies. MultiStrat Re delivers experienced underwriting skills and customized risk solutions. Participating reinsurers, such as Resource Re, are able to leverage MultiStrat Re’s platform to reduce their up-front capital and expenses, leverage experienced resources, generate premiums, and launch and grow independent reinsurance companies. MultiStrat Re’s sister company, MultiStrat Advisors Ltd. (MultiStrat Advisors), is a licensed insurance agent in Bermuda. MultiStrat Advisors is capable of offering their clients direct reinsurance opportunities beyond the transactions offered through the MultiStrat Re platform.
The Agreements include two primary components:
Master Services Agreement (the “MSA”) sets out the terms and conditions of the underwriting services provided by MultiStrat Re, the process for collection and processing of premiums and claims, the payments of fees and taxes and certain other administrative functions. For clarity, underwriting is the process of issuing reinsurance policies and is conducted by MultiStrat Re in accordance with Resource Re’s underwriting policies.
Retrocession Agreement (the “Retrocession Agreement”) defines the terms and conditions under which MultiStrat Re agrees to retrocede to Resource Re a percentage of all reinsurance business underwritten, subject to risk and financial limits established by Resource Re. For clarity, retrocession is the practice of a reinsurance company transferring risk (and premium) to another reinsurance company.