Till Capital Signs Underwriting and Services Agreements with Multistrat Re Ltd.; Appoints Auditor

HAMILTON, Bermuda--()--Till Capital Ltd. (TSX.V:TIL) (the “Company” or “Till), a Bermuda domiciled company announces today that its wholly-owned subsidiary, Resource Re Ltd. (“Resource Re”), a Bermuda reinsurance company licensed as a class 3A insurer, has entered into certain agreements (the “Agreements”) with MultiStrat Re Ltd. (“MSRE”), a Bermuda based private special purpose insurance company pursuant to which MSRE has agreed to provide certain underwriting and retrocession related services to the Company. Barriers to entry are a critical factor in limiting access to the reinsurance sector, often requiring start-up capital in excess of $250 million. Working within the MSRE model the Company gains entry to the reinsurance market at an earlier stage with less capital required upfront and may benefit from the opportunity to grow its reinsurance business over time.

“Signing these agreements marks our transition to a reinsurance company,” said William M. Sheriff, Till Chairman and CEO. “We look forward to working closely with the MSRE team in building the Company’s reinsurance asset base.”

“Our original partnership with Resource Re is now greatly enhanced by Till Capital’s ownership of Resource Re and its commitment to the MSRE platform. We are excited to work with the Till Capital team as it builds Resource Re in Bermuda,” said Bob Forness, MSRE Chairman and Chief Executive Officer.

MultiSrat Re Ltd. (MSRE)

MSRE is a privately held, special purpose insurer incorporated and licensed in Bermuda. Unique in its purpose and design, MSRE offers reinsurance clients cost-effective risk protection and capacity, while providing asset managers an expeditious and scalable platform for launching reinsurance companies. MSRE delivers experienced underwriting, customized risk solutions, and excellent security through collateralized reinsurance agreements. Participating reinsurers such as Resource Re may leverage MSRE’s platform to reduce their up-front capital and expenses, leverage experienced resources, generate premiums, and launch and grow independent reinsurance companies.

Agreements

The Agreements include two components:

        1.   Master Services Agreement (the “MSA”): For the duration of the term of the MSA, such agreement sets out the terms and conditions of the underwriting services to be provided by MSRE to Resource Re, the process for collection and processing of premiums and claims by MSRE, the payments of fees and taxes by Resource Re to MSRE and certain other administrative functions relating to the underwriting guidelines and the administration of the services to be provided by MSRE to Resource Re. For clarity, underwriting is the process of issuing reinsurance policies and will be conducted by MSRE in accordance with Resource Re’s investment and underwriting policies.
 
2. Retrocession Agreement (the “Retrocession Agreement”): For the duration of the term of the Retrocession Agreement, MSRE agrees to retrocede to Resource Re a specified quota share of certain insurance and reinsurance business that MSRE assumes from other insurance and/or reinsurance companies meeting the terms and conditions for risk and financial limits as established by Resource Re. For clarity, retrocession is the standard insurance business practice of a reinsurance company insuring another reinsurance company by accepting insurance business that the other reinsurance company agreed to underwrite and such business will be conducted in accordance with Resource Re’s investment and underwriting policies.

Appointment of Auditor

The Company has appointed KPMG Audit Limited in Bermuda.

Other Business

The Company has also retained the services of Renmark Financial Communications Inc. (“Renmark”) to handle certain components of its investor relations activities. In consideration of the investor relations services to be provided by Renmark, the Company has agreed to a monthly retainer payment of $6,000 starting on August 1, 2014. Renmark does not have any interest, directly or indirectly, in the Company or its securities, or any right or intent to acquire such an interest.

Till Capital Ltd.

Till Capital is a unique Bermuda-domiciled company engaged in the reinsurance business through its wholly-owned subsidiary Resource Re supported by a hybrid investment strategy. This non-traditional approach creates a company with diversified investments including royalties and physical gold, well-positioned for future growth through access to and strategic deployment of capital. Our goal: to maximize opportunity; mitigate risk; and invest in assets and opportunities with significant upside potential.

For additional information:

 

Till Capital Ltd.

William M. Sheriff

Chairman and Chief Executive Officer

(208) 635 5415

info@tillcap.com

www.tillcap.com

 

Cautionary Note

The Till Capital shares are restricted voting shares, whereby no single shareholder of Till Capital is able to exercise voting rights for more than 9.9% of the voting rights of the total issued and outstanding Till Capital shares (the 9.9% Restriction”). However, if any one shareholder of Till Capital beneficially owns, or exercises control or direction over, more than 50% of the issued and outstanding Till Capital shares, the 9.9% Restriction will cease to apply to the Till Capital shares.

This news release shall not constitute an offer to sell or a solicitation of an offer to buy any securities of Till Capital or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Trading in the securities of Till Capital should be considered speculative.

Neither the TSX Venture Exchange nor its Regulatory Service Provider (as that term is defined in the policies of the TSX Venture Exchange) nor the Bermuda Monetary Authority accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward Looking Information

Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “except”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “will”, “could” and other similar words, or statements that certain events or conditions “may” occur. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Till Capital assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

Contacts

Till Capital Ltd.
William M. Sheriff, 208-635-5415
Chairman and Chief Executive Officer
info@tillcap.com
www.tillcap.com

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Contacts

Till Capital Ltd.
William M. Sheriff, 208-635-5415
Chairman and Chief Executive Officer
info@tillcap.com
www.tillcap.com