Bermudian run-off specialist Armour is to launch a new reinsurer after raising up to $500 million in equity commitments from an investor group led by New York private-equity firm Aquiline Capital Partners.

The new reinsurance company Armour Group Ltd, will co-invest in global property and casualty run-off transactions in parallel with the group’s affiliates.

As part of the transaction, the former Armour holding company will rename itself Trebuchet Holdings and transfer the Armour brand name to the new group.

Trebuchet Holdings will also contribute its existing P&C run-off platform to the newly established holding company, including the firm’s claims-management operation Armour Risk and, subject to certain approvals, the group’s affiliate ILS Investment Management, which will continue its existing business.

“Aquiline’s investment in Armour reflects the growing demand for run-off as an option for insurance companies that are looking to solve deteriorating reserve positions and optimise their capital,” said Jeff Greenberg, chairman and chief executive officer of Aquiline.

“We are excited to partner with the highly experienced team at Armour and believe that their ILS management capabilities provide a strong competitive differentiator.

“The formation of our permanent capital vehicle provides the team with the full toolkit to capitalise on the market opportunity.”

Armour CEO Brad Huntington, who co-founded the company with John Williams, said: “Given Aquiline’s deep insurance industry experience, we believe they are an ideal partner to help us grow the team and scale our operation.”

Jefferies served as financial adviser to Armour on the transaction. Trebuchet was advised by Clifford Chance LLP. Aquiline was advised by Sidley Austin LLP.