Axa XL takes full ownership of New Ocean
Bermudian-based New Ocean Capital Management Ltd is now wholly-owned by Axa XL.
New Ocean was created in 2013 by XL Group and American-based private equity firm Stone Point Capital, with a focus on providing third-party investors access to insurance-linked securities and other insurance and reinsurance capital market products. In 2016, Japan's Mitsui & Co took a 15 per cent stake in New Ocean.
Axa XL's reinsurance operation has now completed the acquisition of all third-party ownership interests in the asset management company to make it a wholly-owned subsidiary within Axa XL's alternative capital business.
During a transition period, Chris McKeown, the founding chief executive officer of New Ocean, will continue to serve as an advisor to Axa XLs alternative capital business. He will also continue to serve as a director of certain New Ocean managed funds.
Greg Hendrick, CEO of Axa XL, said: “Alternative capital is a core component of our strategy, as we seek to create strategic partnerships matching the risks we initiate with third-party capital alongside our own. Our decision to acquire the outstanding shares of New Ocean demonstrates our strategic commitment to the alternative capital space and represents the latest step towards becoming the partner of choice for investors seeking to access (re)insurance risk globally.”
He added: “We'd especially like to thank Chris whose dedication and 30 years of experience helped launch and grow New Ocean and bring it to this point where we can start our next chapter in alternative capital management.”
Charles Cooper, head of Axa XL's global reinsurance operations, said: “Under this consolidated structure, the alternative capital business will offer investors a full suite of underwriting, that will leverage Axa XL's world-class risk origination and underwriting franchise: ILS asset management, utilising New Ocean's proven track record and fiduciary experience; and fronting activities/insurance management services for transacting business through Axa XL's balance sheet, directly supported by our experienced risk and structured finance experts.”
Daniel Brookman is Axa XL's head of alternative capital. He joined the company in early 2016 as senior vice-president of alternative capital and was last year promoted to lead the team.
Mr Cooper said: “As a key source of risk origination for our alternative capital activities lie within our reinsurance operations, Dan will join our global Reinsurance Leadership Team. The new alignment will help accelerate our alternative capital activity and provide greater flexibility for our underwriters and ultimately our brokers and clients.”