Log In

Reset Password
BERMUDA | RSS PODCAST

TransRe acquires minority stake in Pillar Capital

Transatlantic Holdings Inc, a unit of Allegheny Corp, has become a minority owner of Pillar Capital Holdings, a Bermuda-based insurance asset manager focused on collateralised reinsurance and catastrophe insurance-linked securities (ILS).

TransRe joins Marsh & McLennan Companies, Aquiline Capital Partners as Pillar Capital backers. In addition to acquiring a minority stake in the company, TransRe has made a multiple-year commitment to invest in Pillar’s insurance-linked funds.

Pillar says it has strong institutional support and its ILS products offer low correlation to traditional asset classes and a favourable liquidity profile relative to many other types of alternative investments.

“We look forward to working with TransRe and our other partners as we develop first-class investment opportunities in the reinsurance space for our investors,” said Chris McKeown, CEO of Pillar.

“The market demand for well-qualified independent third-party managers of property catastrophe risk from institutional investors continues to be high. After considering a variety of ways to participate in this trend, we chose to partner with Pillar,” said Michael Sapnar, CEO of TransRe.

“We’ve known the Pillar team for some time and believe they are well-positioned to build a leading asset manager for insurance-linked investments.”

New York-based Alleghany Corporation acquired Transatlantic Holdings for $3.4 billion in November 2011 after a months-long bidding war that drew in offers from Berkshire Hathaway, Allied World Assurance and Validus.

Pillar was formerly Juniperus Capital. No financial terms of the deal between TransRe and Pillar were disclosed.

You must be Registered or to post comment or to vote.

Published December 11, 2012 at 8:00 am (Updated December 10, 2012 at 7:06 pm)

TransRe acquires minority stake in Pillar Capital

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon