Artex, Gallagher’s captive alternative risk transfer, insurance-linked securities (ILS) facilitation and capital solutions subsidiary, is set to rebrand all of its cell facilities and transformer offerings under the name of Artex Axcell, with the aim of unifying the brand proposition through these important services aimed at the market.
Artex is already one of the largest managers of global cellular facilities, which include protected cells and separate cells of corporate structures domiciled in financial centers around the world, including key domiciles of insurance, reinsurance and ILS such as Bermuda, Cayman Islands, Guernsey and the United States.
The company announced today that it will transition all of its cellular facility names to Artex Axcell over the coming months, with the aim of providing its customers with greater efficiencies and higher levels of service.
Artex believes that clients want an alternative risk solution that “requires less time, investment and resources”. It therefore responds by unifying the brand proposition and leveraging efficiencies where possible.
“The creation of Artex Axcell is the result of a streamlining effort that will be progressive across all jurisdictions and drive a consistent global approach,” said Peter Mullen, Global CEO of Artex. “The new cellular facility name is designed to highlight our best-in-class offering and build on the strength and reputation of the Artex brand with entities in the United States, Cayman, Bermuda and Guernsey.
Artex also manages ILS and catastrophe bond structures in other emerging domiciles, such as Singapore, Hong Kong and the UK.
Artex notes that cellular facilities can be used for a range of risk management and transfer needs, including gaining greater access to insurance, reinsurance and the capital market, to provide customers with more flexibility in their coverage, to fill gaps in commercial insurance policies, to create new revenue streams, as an alternative structure to an owned captive and as a captive exit strategy.
The company said Artex Axcell represents a united and holistic approach for customers and is derived from the words “accelerate” and “cell”.
Peter Mullen told Artemis that over time Artex would also rename its corporate structures through which cell offerings are offered to align with the new Artex Axcell brand.
An example of this would be that the well-known structure of Artex (SAC) Limited, which houses many private catalytic bonds and other ILS or collateralized reinsurance arrangements in which Artex is the insurance manager, will eventually become Artex Axcell Re ( Bermuda) Ltd., and at that time all future transaction documents will also bear the new name.
Mullen also told us that Artex intends to create a new facility in Vermont that would also operate under the Artex Axcell brand, providing an alternative cellular structure to the United States.
The company explained that “For organizations looking to reduce the total cost of risk and take more control than the traditional insurance market allows, Artex Axcell creatively offers a more efficient risk transfer vehicle with a lower investment of time, money and resources.
“For capital markets investors seeking a transformational structure, Artex Axcell is the market leader in advising, facilitating and executing these transactions quickly and efficiently. »
Cellular structures play a vital role in the insurance-linked securities (ILS) market, particularly as structures to host collateralized reinsurance arrangements for ILS fund managers and their cedant and investor clients.
Cellular structures can also house private catastrophe bond arrangements and serve as a structure used to ensure effective and secure segregation of liabilities and/or assets within multi-transaction ILS vehicles.