Based in London and established in 2019, Granular Investments is a specialist advisor for re/insurance companies that want to participate in the growing European bank capital relief market by offering credit risk protection on loan portfolios. Its wholly owned subsidiary Granular Investments EU SAS operates in the EU from its Paris base.

By properly transferring credit risk on a portfolio to a highly rated re/insurer, banks can reduce their regulatory capital needs if they meet certain conditions required by their supervisors. This market now covers €100bn of new loans each year.

The founders of Granular Investments underwrote in 2018 the first such transaction through insurance in Europe covering a €3bn loan portfolio.

This area of credit risk protection can be well remunerative for re/insurers but is highly complex. It requires:

• Outstanding knowledge of banking and insurance regulation, including regulation that is in the making;
• Constant dialogue with banks;
• Inside knowledge of how banks operate and the ability to review their underwriting and servicing processes;
• Equally excellent understanding of how insurance companies operate and the influence of rating agencies, regulators, boards and investors
• Strong analytical and contractual skills;
• The ability to negotiate a mutually satisfactory deal.

The founders of Granular Investments have decades of experience in banking, insurance and securitisation. With a long track record of deal execution and excellent credit performance for past deals that have gone through the financial crisis, Granular Investments is the best partner to assist highly capitalised re/insurers willing to enter this market.

Working with Granular Investments provides immediate access to deals, removes the need to invest in setting up a dedicated team, allows to easily change the level of commitment and maintains underwriting control at the re/insurer.