Regulation XXX collateral arranged for a large block of life insurance business ceded by Security Life of Denver

Karson Management (Bermuda) Limited has completed $825m deal with ING Insurance. The deal provides Regulation XXX collateral for a large block of life insurance business ceded by Security Life of Denver Insurance Company to Security Life of Denver International Limited through a wholly owned special purpose subsidiary of Karson Capital.

The deal is the first transaction of Karson Capital Limited, a specialist alternative collateral provider formed by Karson Management (Bermuda) Limited.

The form of collateral issued is a financial guarantee in the form of fully-secured demand notes.

According to Stephen Lawrence a principal in Karson Management, "The successful launch of the program was considerably aided by BNY Mellon in providing securities services and ING Bank (London Branch), whose insurance market expertise was invaluable in bringing such an innovative program to fruition."

Karson said it is currently working on several follow-through transactions with ING Insurance and ING Bank (for other clients), as well as a number of third-party insurers and bank and non-bank capacity providers.