Multi-Strat Holdings, the owner of the MultiStrat Re platform which enables asset managers such as hedge funds to more easily get into the reinsurance business, has announced the acquisition of Annapolis Consulting Group LLC,
Annapolis Consulting Group is a U.S. based international consultancy that provides reinsurance and exit strategies for captives and corporate self-insureds. It specialises in helping to resolve costly legacy claims and captive run-offs.
MultiStrat says that combining the two firms will help them to provide captives, corporate self-insureds and other insurance companies with liquidity, growth, collateral relief and closure solutions for a wide variety of prospective and legacy claims portfolios.
The acquisition will also help MultiStrat to access more premium float through its underwriting of the risks sourced by ACG. These risks can be distributed to the asset manager owned reinsurers on its platform, giving them access to premium float which can be used within their investment strategies. MultiStrat makes it simpler for asset managers to set up and run their own investment oriented, or hedge fund strategic, reinsurers.
Sourcing risk for the asset managers on its platform is a key piece of the platform’s remit and access to captive, or run-off risks, with longer durations, will be a very valuable addition.
Bob Forness, MultiStrat Re’s CEO, commented on the acquisition; “MultiStrat is excited to welcome the ACG team to our group of specialty reinsurance and advisory services companies. ACG’s expertise, knowledge and relationships will be essential to MultiStrat Group’s design and delivery of cost effective risk protection, capacity and legacy solutions for the captive market. ACG will be MultiStrat’s first US- based business, and the addition of ACG’s legal, claims, auditing and runoff acumen will add significantly to our overall capabilities.”
“ACG has a strong history of providing responsive and innovative solutions to what are often complex reinsurance challenges. Teaming with MultiStrat will provide ACG with access to tools that will multiply our effectiveness,” added Sean Logan, CEO of Annapolis Consulting Group, Inc.