The recent launch of NovaCore’s new collateralized reinsurance sidecar NovaRe, backed by alternative investment firm New Mountain Capital, LLC, through the establishment of VictoryRe, reflects New Mountain’s conviction in specialty insurance and aligns with its strategy for building integrated and scaled businesses, Steve Klinsky, CEO and Founder has said.
As we previously reported, VictoryRe has been established as a new platform by New Mountain Capital and NovaRe as a collateralized reinsurance sidecar structure within it, to provide collateralized capacity to back programs of business written by Novacore.
The launch of VictoryRe marks the firm’s entry into the reinsurance carrier market with a long-term vision to build a diversified, multi-line reinsurance platform.
NovaRe will operate as a dedicated vehicle within VictoryRe and will reinsure select specialty business originated by Novacore.
In addition, NovaRe will also provide multi-year capacity to support Novacore’s expanding MGA business, bringing it a supportive pool of reinsurance capital to enable an efficient response to market opportunities while preserving balance sheet stability for carrier partners.
“The structure represents New Mountain’s first step in building an integrated insurance platform combining underwriting, distribution and long-term capital. VictoryRe is designed as a long-term platform to reinsure insurance liabilities through aligned capital solutions,” New Mountain explained.
It’s important to highlight, that the launch of VictoryRe also establishes a scalable foundation for New Mountain’s long-term strategy within the insurance and reinsurance space, with flexibility to support expansion into additional insurance and reinsurance verticals over time.
Through the NovaRe sidecar, VictoryRe will support the continued growth of Novacore’s high-performing specialty programs while also maintaining underwriting discipline and a long-term profitability focus.
New Mountain also noted that VictoryRe will provide incremental, multi-year premium capacity to help support Novacore’s platform, enabling efficient response to market opportunities while preserving balance sheet stability for carrier partners.
Steve Klinsky, CEO and Founder at New Mountain, commented: “The launch of VictoryRe and NovaRe reflects our conviction in specialty insurance and our strategy of building integrated and scaled businesses. We see significant opportunities to thoughtfully expand VictoryRe over time across complementary areas of the insurance and reinsurance market.”
Adam Weinstein, President and COO of New Mountain, and Cyrus Moshiri, Managing Director and Head of Structured Credit, said: “The creation of VictoryRe and NovaRe are the product of a long-standing firm initiative to enter the reinsurance carrier space, and partnering with the Novacore team was a logical first step.
“We look forward to growing VictoryRe alongside Novacore and investing in additional areas within the insurance ecosystem, particularly those that benefit from long-duration capital and disciplined asset-liability management that are more asset intensive.”
Robert Mulcare, Managing Director at New Mountain, added: “Novacore has consistently demonstrated its ability to identify attractive specialty markets and execute with underwriting precision. We are pleased to support this capital solution, which aligns long-term investment capital with a diversified portfolio of well-managed programs. The structure underscores our shared commitment to responsible growth, disciplined risk management and sustainable value creation across the specialty insurance landscape.”
To conclude, New Mountain observed that the transaction reflects the firm’s strategy to collaborate with differentiated underwriting platforms and to allocate long-duration capital across various re/insurance markets over time, where the alignment between underwriting and capital can lead to distinct outcomes.
Latham & Watkins LLP served as legal advisor to New Mountain and VictoryRe on this transaction.
Find details of numerous reinsurance sidecar investments and transactions in our directory of collateralized reinsurance sidecars transactions.
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