Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance and transportation investment firm, has invested in a new high net-worth market-focused venture called Vault, in collaboration with Allied World Assurance Company Holdings.
Vault has been structured as a Reciprocal Insurance Exchange and a fully licensed managing general agent (MGA) that addresses the demands of the high net-worth personal insurance market.
Hudson Structured Capital’s (HSCM Bermuda) clients holds a minority interest in the venture, with Allied World providing substantial capital and infrastructural support, subsequently owning the majority of Vault.
The new venture will provide insurance protection and services for high-value homes, art, jewellery, and personal excess liability coverage. Vault enables these coverages to be packaged under one transaction via an online platform, offering fast quote and binding.
Managing Partner of HSCM Bermuda, Michael Millette, said; “We are delighted to have the opportunity to invest with Allied World in the Vault plan and with this team. We believe that Vault is a timely addition to the U.S. high net-worth insurance market.”
Allied World President and Chief Executive Officer (CEO), Scott Carmilani, added; “We believe there is an underserved market in the high net-worth space, and Vault will help to meet the demand for these coverages and specialized services. Allied World is very proud to be involved in the initial build-out of Vault’s infrastructure and brand and pleased to be a part of this venture.”
As part of the announcement, Charles Williamson, most recently CEO of Tower Hill Insurance Group, has been appointed CEO of Vault, bringing more than 30 years of high net-worth market experience to the venture.
Williamson, commented; “Vault’s unique structure as a policyholder-owned reciprocal exchange and an E&S company positions it to meet the diverse needs of this fast-growing segment. We are grateful for the support and insight we have received from key agency partners in shaping Vault’s offerings.
“With the strong support of Allied World, we look forward to radically improving the service experience of agents and insureds in this important market.”
The coverage offered through Vault will be available via agents and brokers that operate in the high net-worth arena.
Broker TigerRisk Capital Markets & Advisory served as the transaction advisor to Allied World, and also the placement agent for Vault.
The investment is another example of Hudson Structured finding novel ways to attach its capital to insurance risk, to the benefit of its investors.