Appleby acted as Bermuda counsel to African Risk Capacity (ARC), a specialised agency set up by the African Union (AU), on establishing a specialist hybrid mutual insurance company to help AU member states become more resilient to extreme weather events and to protect insecure food populations in light of climate change.

Appleby advised on the incorporation and registration of ARC Insurance Company Limited (ARC Ltd), a Bermuda-domiciled company, established to provide insurance coverage against drought and other weather-related risks for a group of countries initially comprised of Kenya, Mauritania, Mozambique, Niger and Senegal. Germany and the United Kingdom are founding members of the mutual and contributed the initial capital.

ARC Ltd has been initially capitalised with US $135 million in drought insurance coverage tailored to the specific needs of the five insured countries. Additionally, US $55 million will be provided via global reinsurers and weather risk markets in order to cover the risks it is taking on from the participating countries.

The Appleby team was led by Insurance Partner Brad Adderley in the Bermuda office, and assisted by Associate Seth Darrell on the Insurance team and Counsel Martin Ouwehand on the Litigation & Insolvency team.

Mr. Adderley commented: “Climate change is a global concern and at the forefront for governments who are grappling with how to respond to such events. In the last few years, our team has advised on a variety of insurance transactions structured through special purpose vehicles related to hurricane losses and even agriculture-related exposures. This transaction with ARC is of great significance, further reflecting an increased global focus on the importance of assessing and responding to weather-related risks, particularly affecting those vulnerable populations from extreme events.”

ARC was established in 2012 as specialised agency of the AU to help AU member states improve their capacities to better plan, prepare and respond to extreme weather events and natural disasters.

External partners included Stroock Stroock & Lavan LLC, Marsh IAS as Insurance Manager in Bermuda, and Willis Group as reinsurance broker.

Media enquiries: Kanelli Marsh

Share
Twitter LinkedIn Email Save as PDF
More Deals
11 May 2022 | Deals

Appleby Bermuda Advised Relm II In Its Incorporation And Registration To Provide Reinsurance Capacity In The Crypto Space

Appleby served as Bermuda counsel to Relm Insurance II Ltd. (Relm II) in connection with its incorpo...

5 May 2022 | Deals

SkyRidge Re team wins ‘Life Transaction of the Year’ at the Trading Risk Awards 2022

Congratulations to the SkyRidge Re team for winning ‘Life Transaction of the Year’ at the Tradin...

19 Apr 2022 | Deals

Appleby Bermuda Advised Swiss Re In Innovative USD1.15bn Transaction Combining Bank Financing And Insurance-Linked Securities

Appleby acted as Bermuda counsel to Swiss Re, a leading wholesale provider of reinsurance, insurance...

4 Mar 2022 | Deals

Appleby Bermuda advised S&P Global in its USD 140 billion merger with IHS Markit

Appleby acted as Bermuda counsel to S&P Global, the world's foremost provider of credit ratings,...

2 Feb 2022 | Deals

Appleby acted as Bermuda counsel to Integral ILS in relation to its USD 1.4 billion in total investor commitments

Appleby acted as Bermuda counsel to Integral ILS Ltd., the independent Insurance-Linked Securities (...

Contributors: Matthew Ebbs-Brewer
10 Dec 2021 | Deals

Appleby Bermuda advised ST Energy Transition on its USD250 million ESG-related SPAC IPO

Appleby acted as Bermuda counsel to ST Energy Transition I Ltd. (the “Company”) on its USD250 mi...

19 Nov 2021 | Deals

Appleby Bermuda advised Wejo, a global leader in connected vehicle data, in its USD1.1 billion merger with Virtuoso Acquisition

Appleby advised Wejo Group Limited, Wejo Bermuda Limited and Wejo Limited on matters of Bermuda law ...

27 Oct 2021 | Deals

Appleby Bermuda advised Santacruz Silver Mining in its acquisition of Glencore’s producing Silver Mines in Bolivia

Appleby acted as Bermuda counsel to Santacruz Silver Mining Ltd. ("Santacruz"), a Canadian mining co...

6 Oct 2021 | Deals

Appleby advised on Ledger’s ILS Nanorock Fund

Appleby Bermuda advised Ledger on the launch of their casualty insurance-linked securities fund, Nan...

21 Jul 2021 | Deals

Appleby Bermuda acted for UK’s largest special motor insurer

Appleby Bermuda acted for the UK's largest special motor insurer and Lloyds's underwriter ERS Insura...