Bermuda-based insurance manager Horseshoe Group and ISIS Fund Services have formed a joint venture fund administrator to service funds investing in insurance linked securities (ILS). ILS Fund Services, a Bermuda exempted company, will provide services to ILS funds, including prelaunch advisory services, portfolio valuation services, fund accounting and investor services.
The JV leverages Horseshoe Group’s expertise in delivering valuation services for insurance-linked investment structures such as catastrophe bonds and collateralized reinsurance and ISIS Fund Services’s experience in fund accounting and investor services.
Andre Perez, CEO of Horseshoe Group, commented on the joint venture: “Having looked at other fund administrators out there that are administrating ILS funds, most of them are pretty good at fund administration but have very little insurance expertise, let alone insurance valuation expertise. While the valuation of catastrophe bonds is relatively easy, the valuation of collateralized reinsurance is much more complex and requires insurance underwriting as well as actuarial expertise. Too many fund administrators rely on the ILS fund managers for valuation rather than having the capability to evaluate whether the valuation makes sense. From the perspective of investors in ILS funds, they will gain more comfort knowing that a fund administrator, such as ILS Fund Services Ltd., is active, knowledgeable and has the necessary skills in insurance asset valuation. This is where ILS Fund Services Ltd. will become a clear leader.
Ede Conyers, CEO of ISIS Fund Services Ltd, added, By combining our talents and resources, the Company will be able to offer seamless, comprehensive fund administration and valuation services to ILS funds at competitive rates. We are very excited to work with Horseshoe Group on this joint-venture. ISIS Fund Services has been looking to expand its product offering to ILS funds and we are delighted to be associated with a leading provider of management and transforming services to the ILS market like the Horseshoe Group.
(JDC)