Resolute Global’s Prospero Re Completes Purchase of World’s First Crypto-Denominated Property Catastrophe Reinsurance Contract

HAMILTON, Bermuda; JULY 24, 2023 – Prospero Re Ltd., the rated reinsurance company wholly owned by Resolute Global Partners, announced today that it has completed the purchase of the world’s first crypto-denominated industry loss warranty (ILW) from Nayms SAC Ltd, the leading crypto-native insurance marketplace, through reinsurance intermediary Guy Carpenter & Company, LLC.

This contract provides coverage for U.S. named windstorms, attaching above a loss trigger of $60 billion. While the basic structure of the contract aligns with most other ILWs, the loss trigger in this case is determined by advanced modeling techniques rather than more traditional reporting agents, which can take longer to post loss numbers.

"This transaction reflects our ongoing commitment to find innovative solutions and provide meaningful diversification to our investors.”   - Tom Libassi

Tom Libassi, Co-Founder and Managing Partner of Resolute Global Partners, said: “Bringing this contract to market demonstrates why Prospero Re has a well-earned reputation for innovation. This is not just the first crypto-denominated ILW. It is also the first ILW with a loss trigger based on the advanced catastrophe modeling technology behind our Footprint product, which provides coverage for severe losses and a transparent, timely, and highly efficient way for investors to access the property catastrophe market."

The world’s first crypto-denominated ILW contract innovates beyond the traditional approach in two primary ways. First, the contract uses USD Coin (USDC) as the collateral within the segregated account on Nyams’ Ethereum smart contract, which is independently audited. Second, it secures the collateral through new mechanisms and concepts, including a digital multi-signature process, which provides enhanced transparency and efficiency.