InsurTech

Deals would need to be sized at $50mn plus for transfer to capital markets.

The lawsuit is the latest development in the multi-billion dollar reinsurance scandal.

The company plans to launch in New York and New Jersey next year.

The company said the reduction was due to years of steady improvements.

The man is alleged to have conspired with others to falsify LOCs and collateral letters.

A Q3 listing remains a possibility, but the timeline can change rapidly amid storm season.

Sources said that while a late June-early July IPO is still on the table, a Q4 or early 2025 listing is expected.

The program includes all perils coverage and third-event protection.

The conflict between US and Bermuda legal systems offers no easy route for counterparties to fraud-impacted transactions.

The investment comes in exchange for a $49mn surplus note from HOA and the acquisition of HOA’s rights to potential claims stemming from the Vesttoo fraud.

The motion was filed by Chaucer Insurance Company and Chaucer Syndicates, as managing agent of Lloyd’s Syndicate 1084.

The “convenience claims” route to payout will be limited to claims up to $200,000.

Under the agreement, reached late on Monday, Vesttoo would sell its assets in a transaction that would close by December 1, 2023.

Layr claims its platform can help brokers serve up to 6x more small business clients.

In a motion filed Friday, the trustee requested to convert Vesttoo’s Chapter 11 case to Chapter 7 so that “an independent fiduciary can wind down the debtor’s affairs and avoid significant administrative costs”.

Doing so would save “at least $8.5mn in cash” based on the firm’s monthly operational expenditures, according to a recent motion.

The company said Ki is the first algorithmic underwriter to offer capacity from multiple syndicates.

Farmers’ agents in Florida will be offered an appointment with Slide. Renewals issued by Slide will begin for February 2024 effective dates.

A Delaware judge has ruled in favour of Vesttoo’s automatic stay in the bankruptcy case.

Ola Jacob's role at Descartes will focus on expanding the firm's parametric insurance offering in the London market to corporates exposed to climate risks across the globe.

The additional funding brings Kin’s series D total to $142mn, and its overall equity funding total to $265mn.

The company also said that it has secured the replacement of all reinsurance on its ongoing portfolio of business through third-party reinsurers and an affiliated reinsurer.

The Aon unit noted 37 LOCs “purportedly procured by China Construction Bank (CCB), Banco Santander and Standard Chartered Bank US”.

The company's Ebitda for 2022 was estimated at $60mn compared to $20mn in 2021.

Both organizations have agreed for the appointment of a liquidator for Vesttoo transaction structures at the Supreme Court of Bermuda.

Sources added that the company will continue to monitor portfolio performance to reopen business on a state-by-state basis.

Issues with faked letters of credit are not limited to one banking provider, sources said.

The broker said it believes it has meritorious defenses and intends to vigorously fight the claims and seek recourse against third parties where appropriate.

The firm said it will use the results of an analysis being conducted by experienced investigators to "take appropriate measures”.

The company’s targeted Vescor cat bond would have provided collateral to meet auto and other obligations, but there were multiple structural points of risk for investors.

The fronting company said impairment to Vesttoo’s LoC collateral will be "immaterial".

Fronting companies typically hold premiums in reserve meaning that credit exposure to letters of credit on Vesttoo transactions should only be required in the event of deteriorating losses.

The firm said it had identified two specific transactions in which “collateral inconsistencies” were in question.

E&S specialty MGA Velocity is launching an E&S carrier after receiving an AM Best rating of A- (Excellent).

The programme was "oversubscribed on all dimensions”, the company said.

The platform will connect MGAs with capacity from a wide range of providers.