The Stable Group uses an index-based hedging solution to protect clients from volatile commodity prices which allows the structure to transform index risk into insurance risk and pass it onto the wider reinsurance market. Appleby assisted in structuring and implementing the whole structure, along with establishing both its Collateralised Insurer (Stable Corporation) and an issuer of over-the-counter (OTC) commodity derivatives (Stable Bermuda).
Under this novel structure Stable Bermuda issues OTC commodity derivatives to its global client base and the risk under those contracts is transferred to the Collateralised Insurer, Stable Corporation.
Partner Brad Adderley led the transaction. Partners Matthew Ebbs-Brewer and Sally Penrose also advised on certain regulatory aspects of the transaction.
