Premia Holdings, the global run-off and legacy reinsurance specialist underwriter, has become the first run-off player to bring additional capital into its business using a collateralized reinsurance sidecar structure, with the launch of Elevation Re.
A number of run-off and legacy insurance and reinsurance players have been exploring the use of sidecar structures to bring institutional investor capacity alongside their own, to enhance their deal-making firepower.
Among those are Randall & Quilter and Enstar, but it’s also likely that other major players in the run-off space like Catalina have been exploring this opportunity as well.
Premia Holdings has become the first though, launching a Cayman Islands based sidecar named Elevation Re, which has been capitalised with more than $265 million by third-party investors and a contribution from the sponsor, Premia, itself.
Elevation Re (SPC) Ltd. is a Cayman Islands domiciled segregated portfolio company that has been licensed by the Cayman Islands Monetary Authority.
Premia established Elevation Re to augment its own capital base, adding more firepower which has become all-important in legacy and run-off reinsurance deal-making.
Elevation Re will provide Premia with collateralized reinsurance support for its activities in the global P&C run-off market, enabling Premia to support run-off reinsurance opportunities with additional capacity from the capital markets.
In addition, Elevation Re enables investors to participate alongside Premia in the growing P&C run-off market through what the company calls “a unique and innovative structure.”
Bill O’Farrell, Chief Executive Officer of Premia, commented, “I am very pleased that leading institutional investors quickly grasped that the outstanding team we have assembled, coupled with the track record we have achieved over the last four years, makes Elevation Re a compelling investment opportunity. This transaction brings our total managed capital to over $900 million and we look forward to deploying this capacity into thoughtful solutions for our clients.”
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.