Greenlight Capital Re Ltd. (Greenlight Re), the David Einhorn hedge fund backed reinsurance firm from the Cayman Islands, has struck a $1.1 billion quota share renewal with Windhaven, that will see the reinsurer assume auto business line risks.
The two-year quota share deal is a renewal of an existing arrangement, that sees the Miami-based personal lines insurance carrier Windhaven passing on “a substantial portion” of the increased written premium capacity of more than $1 billion.
“We are delighted to continue, and to have broadened, our long-standing relationship with Windhaven via reinsurance and capital support,” commented Brendan Barry, Chief Underwriting Officer at Greenlight Re. “We look forward to building upon this partnership and remain committed to delivering superior value and opportunities to Windhaven in a marketplace that is changing more rapidly than ever before.”
Cayman property and casualty reinsurer Greenlight Re has been supporting Windhaven’s growth and expansion since 2011, as a reinsurance provider.
“Industry-exceeding growth produced by smart, lean operations and a culture built around innovation is a great recipe to drive profitable business,” added Jim Ehman, lead underwriter for Greenlight Re. “We’re excited about the new possibilities this deal with Windhaven creates.”
Windhaven intends to leverage the capital flexibility that the quota share deal will provide in order to continue its expansion into new states, offer additional products to customers and grow its digital distribution network as well.
“The continuation of our agreement with Greenlight will allow us to grow the local agent channel with new partners and products sold in unique ways, both online and in-store,” Jimmy E. Whited, Windhaven Insurance CEO, said.
For hedge fund strategy reinsurer Greenlight Re, the premium float generated from this auto business will provide a significant boost to the assets that are managed by Greenlight Capital hedge fund manager David Einhorn, as the investment side seeks to augment the total return of the company.