Piiq Risk Partners, the global aerospace (re)insurance broker, announces that its IFLI division has successfully completed its first insurance-backed aviation finance transaction alongside Credit Agricole CIB (CACIB)which closed on 30 March 2021.
IFLI (Integrated Finance Linked Insurance) is designed to originate, structure and manage aircraft finance transactions using commercial insurance. The IFLI product allows banks and capital market investors the protection of an insurance-backed aviation finance product when financing new aircraft or refinancing aircraft already owned by airlines or lessors. Piiq provides a full service offering with-in house expertise in underwriting, deal origination, legal due diligence & transaction structuring and market leading analytics.
This new transaction was a market first refinancing of a Japanese Operating Lease with a Call Option (JOLCO) on a 2020 vintage Airbus A350-900 aircraft operated by Scandinavian Airlines System (SAS).
CA-CIB acted as overall JOLCO equity and debt arranger. The insurers were SOMPO Japan Insurance Inc and Aioi Nissay Dowa Insurance Co. Ltd, with international reinsurance support from, Axis Insurance and Fidelis Insurance.
The transaction marks Piiq’s first IFLI supported financing. IFLI supported financings are available to both airlines and lessors of new or already delivered aircraft across the different manufacturers. In addition, it is also the first time that an insurance-backed product of this nature has supported the refinancing of an aircraft already in operation. This further development of the insurance backed JOLCO market enables Japanese financial institutions to access IFLI through Japanese insurers, and customers to simultaneously access the Japanese equity market and the credit insurance markets.
Mark Esdaile, Senior Partner & Head of IFLI Underwriting commented: “IFLI was conceived as a way of expanding the insurance market capacity through structures, diversity of aircraft types, aircraft vintage and manufacturers. In closing this transaction, we have proven that by having a close partnership with insurers and in structuring a transaction well, a deal can be done even in this period of uncertainty. We are delighted to have achieved this excellent result in partnership with SAS and CA-CIB.”
Kostya Zolotusky, Managing Partner of IFLI commented: “The novelty and complexity of the type of transaction that IFLI supported as its initial offering demonstrates the specialised expertise of this team and the variety of innovative, cost efficient structures the product is able to offer the market. Our full service offering to insurers and market-leading modelling capability means we are able to look at aircraft vintages and structures that open up additional opportunities for the market. With a good level of interest from airlines, lessors, banks and insurers, we are very excited for the future.”
José Abramovici, Global Head of Asset Finance Group of CA-CIB, commented ‘we are extremely proud to continue to bring innovative solutions to SAS in this difficult time. SAS, Japanese equities, iFLI, the insurers and CA-CIB cooperated extensively to cross the finish line and close this landmark transaction. CA-CIB is also delighted to bring this new product to the JOLCO market’.
For all media enquiries, please contact Elinor Zuke or Abi Stevens at Zuke Communications on +44 (02)0 7459 4522.
About Piiq Risk Partners
Piiq is owned by The Ardonagh Group, the largest independent insurance broker in the UK.
Ardonagh Specialty is the holding company and growth platform for leading independent brokers Besso Insurance, Bishopsgate, Compass London Markets, Ed Broking, Inver Re, Piiq Risk Partners and Price Forbes. Combined, we have 1700 colleagues globally and manage $5 billion in gross written premium.
With a strong presence and deep relationships worldwide, and a steadfast commitment to investing in the best people, markets and technology, together our businesses offer open market programmes, reinsurance and international solutions designed to empower clients to achieve their strategic ambition.
The Ardonagh Group
The Ardonagh Group is the UK’s largest independent insurance distribution platform and a top 20 broker globally. We are collection of best-in-class entrepreneurial and specialist brands with a network of more than 100 locations and a combined workforce of more than 9,000 people. Across our portfolio, we offer a highly diversified range of insurance-related products and services across the full insurance value chain in the UK, Ireland and broader international markets. From complex multinational corporations to individuals purchasing personal insurance policies, our understanding of the communities we serve, together with our scale and breadth, allows us to work with our insurer partners to deliver a broad range of product and risk solutions that meet customer needs. For more information, visit our website: www.ardonagh.com.