Global law firm Norton Rose Fulbright has acted as transaction counsel in relation to the latest insurance-linked securities (ILS) transaction sponsored by myLotto24, Hoplon III. This follows the firm acting as transaction counsel on the Hoplon I and Hoplon II transactions. The Hoplon deals use a traditional ILS cat bond like structure demonstrating how this type protection can be used to cover a diverse range of risks.
Under the latest transaction, the Hoplon III Bermuda-domiciled special purpose insurer will provide collateralized insurance coverage to myLotto24 and its affiliates and business partners. The coverage put in place as part of this transaction has been designed to be as flexible as possible with a structure which allows myLotto24 to expand the product range covered as its business needs develop. The collateral for the insurance coverage provided by Hoplon III was provided by a number of specialist ILS investors through a novel syndicated securitised structure.
The Norton Rose Fulbright team working on the deal included corporate insurance partners Maria Ross and Nicholas Berry and associate David Bartlett.
Maria Ross commented: “The Hoplon transactions are innovative deals which are always interesting and challenging to work on. We hope that this latest transaction provides myLotto24 with the flexibility and continued ability to develop its business.”
Nicholas Berry commented: “The structure of the Hoplon transactions prove that ILS structures can cover risks not traditionally associated with the ILS market. We believe there is great potential for other sponsors with cat-type exposures to take advantage of coverages of this type and the benefits associated with it.”
Blerina Essen, Managing Director of myLotto24, commented: “We are delighted to have renewed our innovative Holpon ILS coverage. We would like to thank the Norton Rose Fulbright team for their continued contribution to these transactions and their commitment to our business.”
The Norton Rose Fulbright London ILS and alternative risk transfer practice combines market-leading experience in corporate insurance and capital markets. The team draws upon the knowledge of our global insurance and capital markets lawyers to offer integrated advice on the full range of structured finance issues. We have experience in advising both issuers and investors on a range of ILS and other alternative risk transfer transactions. Many of these transactions have been cross-border ‘market first’ deals with complex structuring and regulatory issues.
