Vario Global Capital Ltd

Whole account reinsurance, collateralised by capital markets


Vario arranges whole account reinsurance, including prior year reserve deterioration:

  • Insurance Capital Enhancement - ICE Notes
    • Multi-year tenor
    • Indemnity basis
    • Simple performance trigger
  • London Market Loss Warranty - LMLW Notes
    • One year parametric ILW, trigger based on aggregated results of all Lloyd’s syndicates
    • Access to cloud based VarioQuant to model basis risk and aggregated Lloyd’s results
  • Individual collateralised SPV, domiciled in Bermuda, UK or Ireland, issuing notes to capital markets investors

Managing risk appetite

Optimise and protect capital and/or earnings

  • Diversify pool of available capital
  • Scalable capacity from $10m - $1bn
  • Reduce SCR requirements
  • Traditional reinsurance for insurance clients; fixed income instrument for - capital market investors

Vario Products


Specialists in transforming underwriting risk into capital markets securities

Bryan Joseph

Bryan Joseph

ILS structuring & Actuarial

Bryan has over thirty years experience in the insurance and reinsurance industry globally.

His experience has spanned the development of capital market solutions, underwriting, pricing and balance sheet restructuring. He has worked with some of the world's largest insurers and reinsurers and assisted them in all aspects of risk management and capital.

He has led the PwC actuarial practice in both the UK and globally. He was designated actuary on a number of the very early ILS transactions.

Bryan is also a non-exec director of XL Catlin UK Ltd.

James McPherson

James McPherson

Project management

James is one of the three founding partners of Vario.

Before Vario he was a PwC Partner for 10 years and a qualified Actuary for over 20 years assisting insurers and reinsurers with reserving, pricing, capital efficiency and M&A. At PwC he lead the London Market Actuarial practice.

Whilst in industry with Travelers (previously St Paul), James was a Director of the Lloyd's Managing Agency which grew from less than $100m of premium to over $1bn in seven years.

Quentin Moore

Quentin Moore


Quentin has worked in the insurance industry for over 25 years both as principal and consultant.

He founded CityPlace Analysis Ltd, a leading independent analysis company. He was the inaugrial Head of Research at Lloyd’s leading the creation of Lloyd’s own well-regarded analytic framework.

Quentin set up a previous insurance linked security business with Lehman Brothers and subsequently advised a number of Private Equity funds on their acquisition of insurance companies.

Quentin is the third founding partner of Vario.

Rebecca Elliott

Rebecca Elliott

Finance & Accounting

Rebecca has over 10 years experience in the insurance and reinsurance industry as a financial accountant, leading audit and consulting teams as a senior manager at PricewaterhouseCoopers in Zurich.

She has led some of the largest global audit teams in the insurance industry, managing all aspects including co-ordination of actuarial, tax and asset management. Her role has also encompassed analysing the accounting treatment of complex transactions both on the asset and liability side.

Rebecca is accredited for a variety of accounting bases including US GAAP, IFRS and local and regulatory reporting, with her industry knowledge recognised by the Swiss Regulator, FINMA.

Markus Gesmann

Markus Gesmann

Portfolio structuring

Markus is responsible for research and modelling at Vario.

Prior to Vario, he headed up the Analysis function at Lloyd's of London for eight years, where he was responsible for market-wide analytical research and development.

Before Lloyd's, he was responsible for pricing at Libero Ventures, a start-up backed by Lehman Brothers. There he developed new technology to transfer underwriting risk into capital markets.

Markus is the maintainer of the claims reserving ChainLadder package and he is the founder of the Insurance Data Science conference. He is a regular speaker at industry conferences.

Michael Watson

Michael Watson

Non-executive Partner

Michael Watson is Executive Chairman of Canopius, a private equity backed global specialty re(insurance) business with its principal operations at Lloyd’s. He led the original management buy-out of Canopius in 2003 and again in 2018.

He has more than 40 years’ experience in commercial and investment banking, trade finance, stock broking, life and non-life insurance, gained in London, Bermuda and New York.

He is a Chartered Accountant and serves on the Council of Lloyd’s and the Boards of the Lloyd’s Market Association and Weston Insurance Holdings Corporation.


More Posts

This article follows on from the joint events organised by the LMA and Vario Partners during the past 18 months. If you have any observations or feedback on this paper, or on ILS more generally, please feel free to contact Markus Gesmann (Vario) or Gary Budinger (LMA). Lloyd’s was always a very capital efficient market for specialty risks. When the market comprised unlimited liability Names, individual members benefited from diversification across syndicates and the mutual Central Fund layer.


In May, Vario held its second annual ILS panel discussion, co-hosted with the LMA. The panellists were Michael Wade (Lloyd’s market veteran and currently Chairman of TigerRisk Capital Markets & Advisory in the UK), Rob Cannon (special counsel and ILS specialist at Cadwalader Wickersham & Taft), John Parry (Lloyd’s CFO who had recently announced his departure from Lloyd’s) and Michael Watson (Chairman of Canopius and a partner at Vario Partners).


ILS Market Update Our July Newsletter provides some selected key developments in the ILS market during the first half of 2018 and a more in depth analysis of Lloyd’s Central Fund. Reinsurers will have to transform from risk hoarders to risk originators The 2018 renewal season, following one of the busiest CAT years in the recent history, was for most reinsurers very disappointing. Surely, they hoped, premiums would go up while ILS capacity may not reload to the same levels.


ILS Market Update According to Aon, as at 30 September 2017, reinsurance capital has grown to $600bn, with just over 13% - $82bn - coming from alternative markets, such as ILS funds and collateralised reinsurance companies. However, these numbers are very small when compared to the size of other capital markets. In December 2017 Bloomberg estimated the global equity market capitalisation at ca. $65 trillion and the debt capital markets at over $100trillion.


Follow-up from panel discussion at Lloyd’s London has often been at the centre of innovation in (re)insurance and although it is a hub for ILS, Bermuda has taken the lead in this market with a supportive regulatory and taxation system and access to the main types of risks currently been protected by the so-called Alternative Capital. This ‘new’ capital coming to the insurance market has transformed the property catastrophe sector and is beginning to have an impact on other types of business.



The Vario group of companies include:

  • Vario Group Limited, registered in Bermuda with number 51191
  • Vario Global Capital Limited, registered in England & Wales with number 10033177
  • Vario Market Services Limited, registered in Bermuda with number 52009
  • Vario Partners LLP, registered in England & Wales with number OC385276

Registered Office

One Fleet Street, London, EC4M 7WS, UK

London Office

21 Lime Street, London, EC3M 7HB, UK