Insurance-Linked Securities (ILS)
Insurance-Linked Securities (ILS) are securities where value is derived from insurable events. They have increased in popularity in recent years, especially in Bermuda, the “home” of insurance.
ILS securities are seen as attractive to investors due to their non-correlation with the traditional financial markets. They are also attractive to insurers who welcome this additional method of financing.
As a licenced Fund Administrator, Kensington has the ability to administer your ILS Fund. Our staff has experience in dealing with such structures, and our Managing Director was a Director on an Insurance based Fund Administrator.
As an ILS structure will generally require a Special Purpose Vehicle (SPV) to issue the securities to investors, our sister company, Mayfair Corporate Services Ltd. can incorporate this SPV for you and provide you with an SPV Resident Representative as required by Bermuda regulations.
We are licensed by the Bermuda Monetary Authority (“BMA”) and are subject to their oversight. The BMA has a very thorough licensing criteria and conducts regular on-site reviews of the entities that are under their supervision. Our Fund Administration license, therefore, provides you with an additional layer of comfort.
Kensington strives to balance the needs of investors, timely delivery of accurate information, and the protection of its clients and investors while maintaining adherence to stringent due diligence procedures under AML/ATF legislation and KYC guidelines.
Contact us today to find out how we can administer your Insurance Linked Securities Fund.