PartnerRe, the Bermuda headquartered and EXOR owned reinsurance company, is set to make third-party capital an even more central component of its business model, with the hiring of Andrew Hughes from Hiscox ILS, who will take on the role of CEO Third Party Capital.
Hughes worked as General Counsel and Chief Compliance Officer at Hiscox’s insurance-linked securities (ILS) and collateralised reinsurance unit Hiscox ILS from 2015 and then took on the Managing Principal role of the unit in mid-2019.
Now, subject to immigration approval, Hughes will move to PartnerRe and have respnsibility for developing and growing its third-party reinsurance capital initiatives and insurance-linked securities (ILS) asset management operations.
Hughes will be based in Bermuda for PartnerRe and report to its President and CEO Jacques Bonneau, as a member of the Company’s Executive Leadership Team.
Bonneau commented on Hughes appointment, “Growing our third-party capital platform is an important strategic initiative for our Company. We are committed to further developing our current platform to provide aligned insurance-linked investment solutions for institutional investor clients leveraging our deep underwriting and distribution capabilities. Growing this aligned capability will allow us to continue to develop and strengthen our relationships with our insurance clients and brokers.
“Andrew’s experience and track record in capital raising, structured finance, alternative investment assets, ILS operations, and governance, along with his broad network of contacts will bring the added strength needed to continue to build our strengths in this important area.”
Prior to his time at Hiscox ILS, Hughes worked as Senior Counsel for QIC Limited in Queensland, Australia, a diversified alternatives asset manager.
PartnerRe said it aims to make third-party reinsurance capital a key component of its strategy and by appointing a CEO for a dedicated Third Party Capital unit the firm is formalising this within its structure.
PartnerRe has long operated partnerships with third-party investors through its insurance-linked securities (ILS) operations, which include its own Lorenz Re sidecar structure and dedicated investor structures, such as one recently announced with Dutch pension investor PGGM, the so-called Huygens relationship.
In addition, PartnerRe has also managed a portfolio of catastrophe bonds in the past and in the last year secured a €750 million injection of capital from French insurer Covéa into special purpose reinsurance vehicles managed by the reinsurer.
As a result, its third-party capital activities have expanded significantly over the last few years and so formalising the structure with a CEO to lead these initiatives is a natural step.