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Bermuda companies collaborate in transfer

Jason Carne has become an advisor to HSCM Bermuda

Island-based investment manager HSCM Bermuda has invested $20.1 million in preferred shares in a reinsurance vehicle that will take over $35.3 million of seasoned workers’ compensation liabilities.

The deal, on behalf of an unnamed company, was arranged by specialty reinsurer MultiStrat, also based in Bermuda, along with its affiliate the Annapolis Consulting Group.

Rachel Bardon, managing director of HSCM Bermuda, an arm of Hudson Structured Capital Management in the US, said: “We are delighted to complete this transaction in this legacy block of business.”

Tim Tetlow, a partner in the firm, added: “This transaction allows the cedant to move forward and focus on its future.”

And Michael Millette, managing partner of Hudson Structured, said that he hoped to do more business with MultiStrat in the future.

He added: “We are pleased to collaborate with MultiStrat in this transaction.

“We have studied a series of options together and expert that this will be the first of many that we complete.”

Bob Forness, CEO of MultiStrat, said: “The combination of the HSCM Bermuda team’s expertise and our efforts over many months produced an attractive transaction and a template for the future.

“We look forward to working more with HSCM going forward.”

The news came as Hudson Structured and HSCM Bermuda announced that it had appointed former KPMG Bermuda managing director Jason Carne as an adviser focusing on valuation and reinsurance.

Mr Carne said: “I have been following them with interest for a while now and I’m a firm believer that the next step for ILS is to bring a fuller spectrum of reinsurance risk and opportunities, including property, casualty and long-term business to the third party capital markets.”

He joins David Cash, former CEO of Endurance Specialty Holdings and Rich Carbone, ex-chief financial officer of Prudential Financial and current director of two further companies.

Mr Millette said: “Our board of advisers provides the firm with breadth and depth of experience and judgment that we rely upon. Jason is an exceptional addition to the team.”

Mr Carne worked at Hamilton-based KPMG for almost 20 years and was founder and leader of the firm’s insurance-linked securities practice.

He also serves as a non-executive director for several Bermudian reinsurance companies.

Hudson Structured and HSCM Bermuda invest across the risk and return spectrum in all instruments and sectors of the insurance and reinsurance markets.

The board of advisers works as part of the HSCM Bermuda team to review strategy and investments.