Enstar Group Ltd and its investment partners have launched a new Bermudian reinsurer with capital of $620 million.

KaylaRe will offer “a diversified range of specialty reinsurance to the global insurance market”, according to a statement from Enstar last night.

Enstar is also a Bermuda company with its head office in Queen Street, which specialises in buying and managing companies and portfolios in run-off. It trades on the Nasdaq Stock Exchange and has a market capitalisation of $3.2 billion.

KaylaRe will be backed by a $300 million investment from Enstar, as well as $270 million from funds managed by Hillhouse Capital Management, Ltd, a global investment manager with more than $25 billion in assets under management.

Another $50 million will come from funds managed by Stone Point Capital LLC, a private-equity firm with aggregate committed capital of some $13 billion.

KaylaRe will be led by Nick Packer, a co-founder of Enstar, who will be the new company’s chief executive officer.

Mr Packer has served as Enstar’s executive vice-president and joint chief operating officer since 2001 He has also served StarStone, Enstar’s global underwriting subsidiary, as executive chairman and CEO since 2014.

Mr Packer will remain on the StarStone board as a non-executive director.

“KaylaRe aims to deliver superior risk-adjusted returns over market cycles through a diversified asset allocation and selective underwriting,” Enstar said in a statement.

“KaylaRe has entered into a 35 per cent quota share agreement with StarStone, Enstar’s global underwriting subsidiary, and loss portfolio transfer agreements with Enstar for certain legacy business.

“Over time, KaylaRe expects to develop and opportunistically write third-party premium, and to participate in certain future Enstar legacy transactions.”

Enstar will act as KaylaRe’s exclusive reinsurance manager, while Hillhouse will be its primary investment manager.

Dominic Silvester, Enstar’s CEO, said: “KaylaRe brings Enstar together with partners Hillhouse and Stone Point to create a unique global reinsurer.

“KaylaRe has great performance potential, and a dynamic and proven leader in Nick Packer, who has been a core contributor to Enstar’s growth and success.”

Mr Packer said: “KaylaRe is a differentiated total return reinsurer, and it is an honour to lead this company from its inception.

“Through Enstar, we have long-term access to a high-quality, diversified portfolio of low volatility specialty insurance risks and supporting infrastructure.

“Further, the additional investment and support of Hillhouse and Stone Point provide KaylaRe with the capability to create substantial incremental value for shareholders through market cycles.”

With the launch of KaylaRe, Enstar also announcing several management changes.

Paul O’Shea has been named as president of Enstar and executive chairman of StarStone.

Orla Gregory, a 13-year veteran of Enstar, has been appointed the firm’s chief operating officer.

Paul Brockman and David Atkins will take on broader responsibility for Enstar’s core insurance and legacy activity, including oversight of claims, commutations, and ceded reinsurance.

Demian Smith has been named group CEO of StarStone, while David Message has been named the company’s chief underwriting officer.