Global, aviation-focused alternative investment manager, Castlelake, L.P., has established Itasca Re Limited in Bermuda, a new reinsurance company designed to provide insurance financing solutions to both buyers and owners of commercial aircraft assets.

Castlelake specialises in asset-backed private credit, and has 17 years of experience investing in, financing, and managing aviation assets.

It has created Itasca Re, a Bermuda-licensed reinsurer, to innovate and expand the financing solutions it can offer, as it attempts to enable competitive financing rates for aircraft asset buyers by transferring the non-payment risk traditionally held by financiers to third parties through an insurance policy.

The policies, explains Castlelake, will be issued by Starr Insurance Companies and reinsured by Itasca Re and other potential third-party reinsurers pursuant to a dedicated reinsurance agreement.

The new reinsurer will be led by Kostya Zolotusky, an experienced aviation industry veteran, who most recently led Piiq Risk Partners Ltd.’s Integrated Finance Linked Insurance (IFLI) division. Piiq Risk is an aviation sector focused insurance broker, and will provide exclusive brokerage services to both Starr and Itasca Re.

Joe McConnell, Partner and Deputy Co-chief Investment Officer at Castlelake, commented: “Itasca Re is the latest step Castlelake has taken to strategically innovate and expand the financing solutions it can offer. Itasca Re brings reinsurance support for…