Replexus uses a Guernsey Incorporated Cell Company (ICC) in which to incorporate 'Incorporated Cells' (ICs) as issuers of insurance linked securities (ILS). Each incorporated cell is a separate incorporated entity in its own right, with its own Memorandum and Articles and its own insurance license. As legal entities the ICs can act as issuers in their own right without all relying on the core to do so. Given that they are separate legal entities rather than all a single legal entity as are PCCs, SACs and SPCs, there is absolutely no ability for creditors of one IC to try to claim assets from another IC within the ICC.
Replexus creates true asset-backed securities where the reinsurance agreement together with the collateral form the asset being securitised. These are not 'loan notes' as typically used for non-144A cat bonds. Such loan-note structures are not bankruptcy remote as in these structures the assets are under the control of the issuer and could potentially be attached as they pass through the issuer on redemption; the assets of the Replexus securities are fully bankruptcy remote and the issuer (the IC) never has beneficial interest in the collateral assets - the cedent and the noteholders are the only entities to have beneficial interest in the transaction's collateral assets.
Replexus will provide full documentation for the issue.