AmTrust International’s mortgage & credit division has completed a capital relief transaction on a €1bn residential mortgage portfolio originated by one of Italy’s top banks.

The solution developed by AmTrust is new to the Italian market and allows the implementation of a significant risk transfer mechanism through an effective insurance solution.

The firm says its solution highlights the increasing role of specialised insurance companies as investors in the banking system, offering lenders an efficient alternative to manage and diversify their capital base.

Angel Mas, managing director of AmTrust International’s specialty business unit, said: “AmTrust is proud to continue helping the European banking system thanks to its extensive experience in mortgage and credit insurance.”

Patrick Bamford (pictured), business development director, added: “In Italy we have been offering credit insurance solutions to Italian banks since 2002. We aim to continue supporting the banking sector across Europe, developing flexible and innovative solutions suited to the challenges of a changing market and regulatory environment.”