Premier Diversified Holdings Inc. (PDH) has now completed its newest investment in Sequant Re Holdings Limited, the parent to Bermudian ILS and collateralised reinsurance investments company Sequant Re.
As Artemis wrote last week, Premier, which was a seed investor in Sequant Re, had decided to acquire additional shares in the holding company, demonstrating its commitment to helping Sequant Re grow, while allowing it to maintain a similar equity position and reducing dilution of its holdings.
Sequant Re underwrites fully collateralised reinsurance transactions, through the issuance of insurance-linked securities backed by third-party investors. The firm hopes to make it easier for new investors to enter the sector and for experienced ILS investors to access new portfolios of reinsurance risk.
On November 3rd Premier acquired 158,000 common shares of Sequant Re Holdings Limited at $2.00 per share, for a total cost of $316,000. Prior to this latest share purchase, Premier held 3,010,000 common shares of SRHL (approximately 32.37% of the holding company). After this transaction Premier now holds 3,168,000 common shares of SRHL (approximately 34.10%).
“Premier was very fortunate to meet Guy Cloutier and his vision of creating Sequant Re,” commented Sanjeev Parsad, CEO of PDH. “With our continued support and the energetic efforts of Sequant Re’s wonderful team, we believe significant positive events may unfold through 2015 and 2016!”
Premier also has the right to appoint three directors to the Board of Sequant Re Holdings Limited (SRHL). Alnesh Mohan, Sanjeev Parsad and G. Andrew Cooke had been nominated in December 12, 2014. All three continue to act as directors of SRHL, all three are also directors of Premier. Cooke has been appointed to act as Chairman of the Audit and Financial Committee of SRHL and will oversee the financial management of SRHL. Parsad and Mohan will not participate in management or daily operations of SRHL.
The commitment shown by Premier to Sequant Re will both help the collateralised reinsurance and ILS investment provider to scale, as well as in its operations through the Board oversight and Chairing of the Audit and Financial Committee.
Premier is a diversified holding company which began as a medical diagnostic device company. It invested in Sequant Re right at the start, seeing it as an attractive investment to gain exposure to the reinsurance sector.