According to Castlelake, which specialises in asset-backed private credit, Itasca Re was set up to transfer the non-payment risk traditionally held by financiers to third parties through insurance. Licensed in British overseas territory Bermuda, the new company reinsures Starr Insurance Companies, which issues the policy.
“Itasca Re is the latest step Castlelake has taken to strategically innovate and expand the financing solutions it can offer,” declared Castlelake partner and deputy co-chief investment officer Joe McConnell when the reinsurer was introduced.
“Itasca Re brings reinsurance support for creative, customisable, and cost-efficient insurance-backed products to our airline partners and other buyers and owners of commercial aircraft assets at what we see as a time of high need.”
The launch comes amid a spate of aviation-related court cases against insurers.
Castlelake highlighted that Itasca Re will be providing a wide range of insurance-backed risk solutions in the world of aviation finance – including servicing airlines and operating lessors who wish to purchase or refinance new or vintage aircraft assets, as well as financiers looking for alternative syndication or de-risking options.
“With the experience and expertise of the Itasca Re team and partnerships with established market participants, we believe Itasca Re will quickly become a go-to solution provider for global airlines and the broader aviation market,” commented Castlelake’s Armin Rothauser.
Tapped to lead Itasca Re is aviation stalwart Kostya Zolotusky, while exclusive brokerage services will be provided to Starr and Itasca Re by Piiq Risk Partners.
Source: Insurance Business
