MultiStrat acquired by Canopius

Multi-Strat Holdings Ltd., the Bermuda based holding company that underwrites casualty and longer-tailed reinsurance and arranges casualty insurance-linked securities (ILS) transactions, has been acquired by Canopius Group Limited.

Canopius, the global specialty insurance and reinsurance group headquartered in London, is making a majority acquisition of MultiStrat, but the MultiStrat brand will live on in the work the company does.

Canopius highlights the ILS activities of MultiStrat as a key driver and its CEO noted that the firm will be complementary to Canopius’ own growing ILS activities in Bermuda.

Under Canopius’ wing, MultiStrat will continue to operate autonomously under its brand and continue its focus on casualty, longer-tailed risks and also casualty and nice ILS arrangements and transactions.

MultiStrat launched more than six years ago, writing longer-tailed business for hedge fund managers and helping investors get into the total-return reinsurance market.

The company underwrites both prospective and retrospective casualty reinsurance, working with select reinsurance intermediaries.

Alongside its investment broker dealer partners, MultiStrat also places casualty Insurance Linked Security (ILS) transactions with alternative investors, including ILS funds.

The company’s reinsurance and capital advisory teams underwrite and arrange business using its Bermuda based Class 3A segregated accounts company and insurance agency, and Garden Insurance, a Vermont protected cell company.

“We’re very pleased and excited that Bob Forness and the MultiStrat team are joining the Canopius Group. With a strong track record in the Casualty ILS market MultiStrat is recognised for innovation and building strong partnerships with investors and reinsurers. We believe that the addition of MultiStrat will be highly complementary to our existing ILS operations based in Bermuda. We’re confident that with active support from Canopius, MultiStrat can broaden its capabilities and grow profitably in the future,” explained Michael Watson, Chairman and CEO of Canopius.

“As the market and thought leader in optimizing the transfer of casualty risk to the global capital markets, MultiStrat’s innovative products can now be scaled more rapidly with the support of Canopius’ expertise and resources. Chemistry is important in finding the right fit and I’ve had the fortunate opportunity to work with Michael Watson on two prior occasions. Casualty ILS capacity works best when paired with traditional capacity, blending the strengths of both to deliver cost effective coverage for reinsureds and attractive returns for investors,” added Bob Forness, CEO of MultiStrat.

MultiStrat recently completed its largest casualty ILS transaction to-date, a $205 million deal.