The reinsurance operation of AXA XL has acquired all third party ownership interests in its majority-owned asset management affiliate, New Ocean Capital Management, for an undisclosed amount.
With the acquisition, New Ocean is now a wholly-owned subsidiary within the Alternative Capital business of AXA XL, under the leadership of AXA XL alternative capital head Daniel Brookman.
New Ocean’s founding CEO Chris McKeown will continue to serve as an advisor to AXA XL’s Alternative Capital business during the transition period, and continue to serve as a director of certain New Ocean managed funds.
Established in 2013, New Ocean supported AXA XL to partner with Stone Point Capital and later with Mitsui for the development of an ILS fund manager platform that serves institutional investors seeking access to opportunities across the reinsurance industry.
New Ocean has been able to attract capital from major institutional investors for products which are directly aligned with AXA XL’s global underwriting franchise. It is claimed to have had significant success within the property catastrophe, specialty and whole account lines of business.
AXA XL CEO Greg Hendrick 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.”
Hendrick 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.”
AXA XL global reinsurance operations head Charles Cooper 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, utilizing 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.”
Cooper added: “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.”
In September, AXA completed the acquisition of XL Group, after it fulfilled all the customary closing conditions and received regulatory approvals.
XL Group is a specialty and large corporate P&C platform. It will complement and diversify AXA’s existing commercial lines insurance portfolio and its reinsurance capabilities give AXA access to enhanced diversification and alternative capital.