TFS Energy and Carvill Announce Strategic Partnership; Response to Increased Interest in Insurance Derivatives
Tradition Financial Services (“TFS”) Energy, a market leader in the inter-dealer broking of over-the-counter (OTC) and exchange traded physical and derivative products, and Carvill, a leading independent reinsurance intermediary in specialty reinsurance, today announced an agreement to form an insurance derivatives brokerage company. The joint venture will provide derivative brokerage and advisory services to all of their respective clients and markets.
An insurance derivative can be described as an instrument for pricing, procuring, negotiating or transferring insurance policies and contracts. Like insurance, derivatives protect against certain adverse events, and because of their flexibility in dealing with price risk, derivatives have become increasingly popular.
“Through TFS Energy’s and Carvill’s global scale and expertise, our clients will have unparalleled market access to economically and efficiently manage their risk,” commented Kendall Johnson, MD and Global Head of Weather Derivatives for TFS Energy. “We are pleased to have established this joint venture, which will benefit current and future clients in alternative risk transfer.”
“Today, many companies, particularly those in the insurance and energy sectors, are showing increased interest in hurricane and weather derivatives, which are routinely used to hedge against weather volatility around the world,” said John Cavanagh, Joint CEO of Carvill. "We will utilize the combined strengths and expertise of Carvill and TFS to build an insurance derivatives brokerage business that deeply understands the insurance and capital markets and take advantage of the growth opportunities.”
Under this agreement, the joint venture will be managed by both companies and will operate out of TFS Energy’s Stamford office.
Inquiries
| Kendall Johnson, MD and Head of Weather Derivatives, TFS Energy | +1.203.967.0427 |
| Jennifer Van Hofwegen, Head of Communications, TFS Energy | +1.212.791.6491 |
| Lucy McCartney, QBO Bell Pottinger for Carvill UK | +44 (0)20.7861.2424 |
| Kathleen Sheridan, Stanton Crenshaw for Carvill USA | +1.212.780.1900 |