Stone Ridge Asset Management, the New York based asset manager an alternative risk premia focus, including reinsurance and insurance-linked securities (ILS), has provided US $100 million in capital to support an innovative retrocession cyber quota share arrangement for global reinsurance firm Hannover Re.
The arrangement enables capital markets investors to participate directly in covering Hannover Re’s cyber risks through a quota share cession, with Stone Ridge a long-term partner of the reinsurer and the sole investor in this case.
This quota share covers cyber risks in Hannover Re’s worldwide portfolio and has a long-term orientation, while the reinsurer noted the important step of being able to reconcile the complexity of a proportional cyber risk cession with the needs of a capital markets investor as having been achieved in this case.
“For the first time, we were able to transfer cyber risks to the capital markets, and on a substantial scale, through a…
