Stable has used financial market structures to help it achieve its goals, having previously established a collateralized insurer class of company in Bermuda to support its insurance work and reinsurance needs, while also working with a diverse array of risk capital providers.
With the establishment of a Class 3A insurance company, Stable is capitalised to have more than 200% capital adequacy and with Solvency II equivalence. Stable intends to expand its price risk management platform to cover the Energy, Fertilizer and Packaging sectors, continuing on a mission to become the world’s largest parametric insurance platform. Stable currently operates across 300+ hedging markets, offering simple parametric contracts backed by A rated reinsurers with its customer base typically consisting of manufacturers and producers that want a programmatic insurance-like solution to smooth their income, managing costs in their supply chain.
Appleby advised on the Company’s reclassification as a Class 3A insurer, including confirmation that the proposed program is in compliance with Bermuda law, and advised on the company’s internal approvals to effect the reclassification.
Brad Adderley, Bermuda Managing Partner, led the transaction with assistance from Associate Amber Farrington, Trainee Kinika Armstrong, and Paralegal Remond Bonne Smith.
Stable offers a safe harbor for businesses exposed to volatile prices. Stable does this by hosting hundreds of third-party indices that are local or tightly correlated to the physical risks its clients face. From financial controllers to farmers, Stable has democratized hedging for businesses of every size and sector to create the financial stability they need to invest in the future with confidence.