Libero Ventures created by Lehman Brothers

by Richard Kilner

Story link: Libero Ventures created by Lehman Brothers

Libero Ventures, a subsidiary of Lehman Brothers, is to start trading following the FSA granting it authorisation.

Central to Libero Ventures is the tool Reinsurance Financing, which enables insurers to increase their overall return on capital and is suitable for single class, multi-class and whole accounts portfolios.

According to Lehman Brothers, insurers using Reinsurance Financing will keep the exposure on their own balance sheet, selling risk that can be kept more efficiently in capital markets and using the extra capital generated to increase equity returns.

Libero’s CEO, Stuart Degg, explained that with Lehman Brothers as principal Libero Ventures has simplified access to the capital markets, making it more cost effective and taking the benefits of access to vast capital resources to a huge range of insurance risk.

Peter Sugarman, chairman of Libero Ventures and MD of Lehman Brothers Insurance Advisory Group, has said that Lehman Brothers is already a leading player in insurance capital markets, especially in life and catastrophe insurance, and that Libero Ventures Reinsurance Financing is intended to further extend that leading position into the important fields of vanilla property and casualty insurance.