Pillar Capital Holdings Limited, the Bermuda-based reinsurance-linked investment manager which was formerly Juniperus Capital has announced that Transatlantic Holdings, Inc. (TransRe) has become a strategic partner in Pillar. This is interesting as TransRe sold an investment in Pillar last year before it was rebranded from Juniperus. Pillar Capital is an asset manager focused on collateralized reinsurance and catastrophe insurance-linked securities such as catastrophe bonds.
TransRe joins Marsh & McLennan Companies, Aquiline Capital Partners LLC who bought Juniperus from the existing shareholders last January, and the Pillar management team as owners of Pillar. When Aquiline bought into Juniperus/Pillar, investments made by Transatlantic and key Japanese equity partner Itochu Corporation were lost. Marsh & McLennan then acquired a stake in April which boosted Juniperus and was followed in May by their rebranding to Pillar Capital. Now, Pillar appear to be firmly back on the growth track.
As well as acquiring a minority stake in Pillar, TransRe has also made a multiple-year commitment to invest in Pillar’s funds. TransRe is part of the Alleghany Corporation and Alleghany has also made a multiple-year commitment to invest in Pillar’s insurance-linked funds.
“The market demand for well-qualified independent third-party managers of property catastrophe risk from institutional investors continues to be high. After considering a variety of ways to participate in this trend, we chose to partner with Pillar,” said Michael Sapnar, Chief Executive Officer of TransRe. “We’ve known the Pillar team for some time and believe they are well-positioned to build a leading asset manager for insurance-linked investments.”
Joseph Brandon, Executive Vice President of Alleghany commented; “We are very pleased that TransRe is working with Marsh & McLennan Companies, Aquiline and Pillar on this important strategic initiative. The collective experience, capabilities and resources of Pillar’s owners and managers will enable Pillar to achieve its full potential.”
Chris McKeown, Chief Executive Officer of Pillar, added; “We are thrilled to welcome TransRe as a strategic partner and have great respect for the organization. We look forward to working with TransRe and our other partners as we develop first-class investment opportunities in the reinsurance space for our investors.”
This is encouraging news from Pillar, who have been noticeably quiet this year since they hired McKeown and rebranded. The injection of capital from the investments made by TransRe and Alleghany will no doubt be put to good use at the forthcoming renewals.
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