MINNEAPOLIS, January 16, 2023 /PRNewswire/ — Castlelake, LP (“Castlelake”), a global alternative investment manager specializing in asset-backed private credit with 17 years of experience investing in, financing and managing aviation assets, today announced the creation of one Bermuda-licensed reinsurance company, Itasca Re Limited (“Itasca Re”), to provide insurance financing solutions to buyers and owners of commercial aircraft assets.
The solutions offered by Itasca Re are designed to attempt to enable competitive financing rates for purchasers of aircraft assets by transferring the default risk traditionally held by financiers to third parties through an insurance policy issued by Starr Insurance Companies that is reinsured by Itasca Re and other potential third-party reinsurers pursuant to a specific reinsurance agreement.
Itasca Re will be led by a seasoned veteran of the aviation industry Kostya Zolotuskywho most recently headed the Integrated Finance Linked Insurance (IFLI) division of Piiq Risk Partners Ltd. (“Piiq”), an aviation-focused insurance broker associated with The Ardonagh Group, the largest independent insurance broker in United Kingdom. Piiq will provide exclusive brokerage services to Starr and Itasca Re.
“Itasca Re is the latest step Castlelake has taken to strategically innovate and expand the financing solutions it can offer,” he said. Joe McConnell, partner and co-chief investment officer at Castlelake. “Itasca Re provides reinsurance support for creative, customizable and cost-effective insurance products to our airline partners and other buyers and owners of commercial aircraft assets at what we see as a time of great need.”
Armin Rothauserpartner, asset-backed direct lending at Castlelake, added: “With the experience and expertise of the Itasca Re team and partnerships with established market participants, we believe Itasca Re will quickly become a provider of benchmark solutions for global airlines and the wider aviation market.”
Itasca Re is expected to provide a broad spectrum of insurance-backed risk solutions in the aviation finance sector, including servicing airlines and operating lessors seeking to purchase or refinance new or older aircraft assets, as well as financiers looking for alternative syndication or de-risking options for their loan portfolios. Itasca Re’s dedicated approach to secured aircraft financing and the expertise of its team are expected to enable more nuanced asset-backed insurance financing solutions than those available in the current insurance market .
Castlelake has been a strategic partner and provider of active capital to owners and lessees of aviation assets since its inception, having invested more than 17 billion dollars in aviation opportunities, acquired more than 650 aircraft and developed relationships with about 200 airlines.
About Castlelake
Castlelake, LP is a global alternative investment manager focused on real asset, specialty finance and aviation investments across the risk spectrum, from value-oriented to income and investment-grade credit. Founded in 2005, Castlelake manages approximately $20 billion in assets. The Castlelake team consists of over 250 experienced professionals, including 95 investment professionals, across six offices in North America, Europe and Asia. For more information, visit https://www.castlelake.com/.
About Starr Insurance Companies
Starr Insurance Companies (or Starr) is a trade name for the travel assistance and insurance operating companies and subsidiaries of Starr International Company, Inc. and for the investment business of CV Starr & Co., Inc. and its subsidiaries. Starr is a leading insurance and investment organization with a presence on six continents; through its operating insurance companies, Starr offers property, casualty and casualty and health insurance products, as well as a range of specialist coverages including aviation, marine, energy and excess claims insurance. subsidiaries of Starr’s insurance company domiciled in the USA, Bermuda, china, Hong Kong, Malta, singapore, Swiss and the United Kingdom have an AM Best rating of “A” (Excellent). Starr’s Lloyd’s syndicate is rated “A+” (strong) by Standard & Poor’s.
Contact with the media:
Castlelake Media Relations
Molly Blemker
+1 612 851 3083
media.relations@castlelake.com
Prosek Partners for Castlelake
Josh Clarkson / Remy Marin
pro-castlelake@prosek.com
+1 212 279 3115
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SOURCE Castlelake
