The acquisition from Liberty represents a transformative step in Hamilton's goal of building a global, diversified specialty insurance and reinsurance franchise and has met with positive response from regulators and rating agencies
Hamilton Insurance Group today announced that it has completed its acquisition of Pembroke Managing Agency Limited and its platform at Lloyd’s, as well as Dublin-based carrier, Ironshore Europe DAC (IEDAC), from Liberty Mutual Group (Liberty).
The transaction, which follows the signing of a definitive agreement on March 14, 2019 between Hamilton and Liberty, closed after the receipt of necessary regulatory approvals and customary closing conditions.
The acquisition from Liberty represents a transformative step in Hamilton’s goal of building a global, diversified specialty insurance and reinsurance franchise and has met with positive response from regulators and rating agencies. Following the March signing, A.M. Best reaffirmed the “A-” (Excellent) credit rating assigned to the Company’s reinsurance platform, Hamilton Re, and Kroll Bond Rating Agency affirmed Hamilton Re’s insurance financial strength rating of “A”.
Hamilton has now doubled its total premium base, on a pro forma basis, to USD1.1 billion; achieved scale at Lloyd’s, with total managed stamp capacity of approximately GBP600 million; added global underwriting and operational talent that further bolsters the Hamilton team; and acquired a Dublin-based platform that provides non-Lloyd’s capabilities and access to the US (via excess and surplus lines licensing and reinsurance permissions) and to EU markets (via passporting rights).
The deal also provides Hamilton with opportunities to build out the Company’s reinsurance franchise in the US and Europe; establish a leadership position in specialty insurance; further develop its third-party capital management platform; and increase fee-based income by managing third-party capital/syndicates at Lloyd’s.
Hamilton has also announced that Jonathan Reiss, who held the position of Hamilton’s Group CFO, now assumes the position of President, Strategic Partnerships, a new business unit at Hamilton. Tony Ursano has been appointed to the position previously held by Mr. Reiss.
A founding member of Hamilton, Mr. Reiss will assume responsibility for developing the strategy and business plan for Hamilton’s strategic partnerships, including oversight of the Company’s third-party capital platform, Hamilton Capital Partners. Mr. Reiss will also develop proposals for any potential new investment opportunities as well as manage the further development of the Company’s third-party business.
Mr. Ursano comes to Hamilton from TigerRisk Partners, LLC where he held the position of President since 2015. Prior to that, Mr. Ursano was CEO of Willis Capital Markets & Advisory and Head of Corporate Development for the Willis Group for six years. He joined Willis from Banc of America Securities where he was Global Head of the Financial Institutions Group for approximately nine years before becoming a Vice Chairman of Corporate and Investment Banking. Mr. Ursano brings 32 years of insurance industry and investment banking experience to his new role.
Mr. Ursano will join Hamilton on September 5. Until that date, Mr. Reiss will continue to hold the position of Group CFO in addition to his new role.
“Today represents a significant milestone in Hamilton’s development,” said CEO Pina Albo. “Many will see this as a Lloyd’s acquisition, and while we have achieved meaningful scale in that market, this deal expands our opportunities far beyond Lloyd’s.
“Our talented team has become even stronger; and we now work in offices spanning a much larger geography. With the addition of our new operations, including Dublin, the US and Dubai, our ability to attract new clients and partners, and become more relevant to the ones we serve, has increased exponentially.
“In addition, we now have key executives in roles that will leverage all that this acquisition represents.
“As President, Strategic Partnerships, Jonathan joins Global Head, Specialty Insurance Peter Barrett and Hamilton Re CEO Kathleen Reardon in assuming responsibility for the development of three areas of strategic focus where we see real opportunity for organic and non-organic growth.
“And I’m delighted to welcome Tony Ursano to the Hamilton team. Tony knows Hamilton well, having counseled us on a number of initiatives in his role at TigerRisk Partners. As Group CFO, Tony will also be involved in helping to drive the Company’s business development and strategic initiatives.”
TigerRisk Capital Markets & Advisory served as financial advisor and Debevoise & Plimpton LLP served as legal advisor to Hamilton.
Source: Company Press Release