MultiStrat is engaged in writing prospective and retrospective casualty reinsurance sourced via select reinsurance intermediaries


Canopius buys majority stake in MultiStrat. (Credit: Pixabay/Tumisu)

Canopius Group has acquired a majority stake in Bermuda-based specialty reinsurance group Multi-Strat Holdings (MultiStrat) for an undisclosed price.

MultiStrat is engaged in writing prospective and retrospective casualty reinsurance sourced via select reinsurance intermediaries. By working with its investment broker dealer partners, the specialty reinsurer places casualty insurance linked security (ILS) transactions with alternative investors.

The company’s reinsurance and capital advisory teams operate via its Bermuda based Class 3A segregated accounts company and insurance agency, and its Vermont protected cell company Garden Insurance.

Multi-Strat comprises MultiStrat Re, MultiStrat Advisors, and the Annapolis Consulting Group with operations spread over the US, Bermuda and Switzerland.

Canopius chairman and CEO Michael Watson said: “With a strong track record in the Casualty ILS market MultiStrat is recognised for innovation and building strong partnerships with investors and reinsurers.

“We believe that the addition of MultiStrat will be highly complementary to our existing ILS operations based in Bermuda. We’re confident that with active support from Canopius, MultiStrat can broaden its capabilities and grow profitably in the future.”

Canopius, which is a specialty (re)insurer based in London, said that MultiStrat will continue to function autonomously, and will retain its brand.

MultiStrat CEO comments on the transaction with Canopius

MultiStrat CEO Bob Forness said: “As the market and thought leader in optimizing the transfer of casualty risk to the global capital markets, MultiStrat’s innovative products can now be scaled more rapidly with the support of Canopius’ expertise and resources.

“Chemistry is important in finding the right fit and I’ve had the fortunate opportunity to work with Michael Watson on two prior occasions.

“Casualty ILS capacity works best when paired with traditional capacity, blending the strengths of both to deliver cost effective coverage for reinsureds and attractive returns for investors.”

In November 2019, Canopius secured investment from Samsung Fire & Marine Insurance (SFMI). The investment is aimed at supporting the Canopius’ growth resulting following the completion of the merger of AmTrust at Lloyd’s in October 2019.