EQECAT, Inc. and Fermat Capital Management, LLC have announced a three-year licensing agreement for use of EQECAT's catastrophe modeling platform, RQE version 13.
RQE v. 13, released in January 2013, enables re/insurers and insurance-linked securities investors to quantify and manage the potential financial impact of natural hazards. Fermat Capital, which currently manages $4.3 billion in catastrophe bonds, will utilize the RQE catastrophe modeling platform to manage risk in their growing ILS investment portfolios.
"EQECAT's new RQE platform combines many desirable features from across all commercial modeling platforms," stated John Seo, co-founder and managing principal, Fermat Capital. "RQE represents a breakthrough in granularity and transparency. In this multi-model catastrophe market, greater model insight is an important differentiating factor for insurers, reinsurers, and ILS managers alike. We would expect every catastrophe risk manager with a significant risk book to give RQE a serious evaluation and many to license it after seeing what it can do."
Paul Little, president of EQECAT, commented, "We are delighted to renew and expand our relationship with Fermat Capital Management, who have long been a leader in insurance-linked securities. The decision to add RQE to their robust analytical platform is a gratifying validation of the transformative effort we at EQECAT have put into the creation of this new platform. We look forward to continued development of our partnership in the expanding ILS market."