Brit Insurance launches $75m Bermuda sidecar
A $75 million special purpose reinsurer has been launched to back a major UK-based firm.
Bermuda-based Versutus will reinsure a share of global British company Brit Insurance’s property catastrophe excess of loss portfolio.
It is capitalised by a number of unnamed investors to provide collateralised capacity support to Brit, a Lloyd’s of London insurer.
The deal is the latest sign of the industry’s increasing collaboration with the capital markets.
John Sullivan, the carrier’s head of short-tail reinsurance, said: “At Brit, we have a well-established book of diversified worldwide excess of loss catastrophe reinsurance business which has a highly profitable 14-year track record.
“We are pleased to be able to develop new reinsurance relationships with capital marketing partners while providing them with access to Brit’s strong underwriting capabilities, diversified distribution reach, via both our London and Bermudian platforms, as well as all the benefits the group experiences as one of the largest of the Lloyd’s syndicates.”
CEO of Brit’s Bermuda-based global speciality division Matthew Wilson added the move was “an important step for Brit” as the carrier moved to expand its capabilities in the capital markets.
Brit Insurance returned to the London Stock Exchange last year after a 2011 $1.34 billion buyout.
It used third party capital in 2007 to launch the $118 million collateralised vehicle Norton Re, which ran for two years and focused on property retro business.
It launched its Bermuda branch office in Bermuda last September, headed by former Market Re executive Joe Bonanno.
Brit PLC is a market-leading global specialty insurer and reinsurer, focused on underwriting complex risks.
The firm has a major presence in Lloyd’s of London, the world’s specialist insurance market provider, and a significant US and international reach.
Brit also underwrites a broad class of commercial specialty insurance with a strong focus on property, casualty and energy business.
Brit Global Specialty Bermuda complements our distribution network and is regarded as a key component in developing Brit’s global offering and will focus on underwriting excess workers’ compensation reinsurance, as well as US property catastrophe reinsurance, retrocession and industry loss warranty covers.