Premia, a newly-formed property & casualty (P&C) insurance and reinsurance group focused on providing runoff solutions, has completed a $510m initial capital raise.
The formation of Premia represents one of the largest capital raises ever focused on the P&C runoff market and immediately establishes Bermuda-based Premia as a significant market participant.
Premia was founded and will be led by reinsurance industry veteran Bill O’Farrell, who will serve as Chief Executive Officer. The founding investors include Kelso & Company (“Kelso”), a leading private equity firm, its co-investors and an affiliate of Arch Capital Group (“Arch”), a leading insurance and reinsurance group.
In addition to its equity investment, Arch will serve as a key strategic reinsurance partner, allowing Premia to compete on the largest global runoff transactions. The remainder of the capital comes from other institutional investors, the Premia management team and senior members of Arch.
O’Farrell said: “We are very excited to introduce a new, strongly capitalized reinsurance group focused on P&C runoff.
“I have been gratified by the number of inbound calls I have already received from companies, both large and small, and their advisors, seeking runoff solutions from Premia.
“This has only validated my strongly held position that the P&C runoff market is in need of a specialist solutions provider as clients seek to address the inefficient capital drag arising from their runoff operations, free up management time to focus on their core live business, and diversify their legacy exposures away from the concentrated handful of runoff companies that have shaped the market to date.”
Kelso managing director Chris Collins said: “We believe we are entering this market at the right time with the right management team and with a differentiating partner in Arch. We are confident Premia will be a leading participant in the runoff market.”
Arch president and COO Marc Grandisson said: “We are very pleased to help launch Premia. We believe that Premia, with its strong management team, will be well positioned to provide innovative solutions and structures not available in the P&C runoff market today.”
Premia will look to insure, reinsure or acquire runoff portfolios and companies around the globe. Premia’s multi-disciplinary team has broad and deep P&C experience, covering all lines of business and geographies. Premia will work with its clients to design efficient runoff solutions tailored to their needs.
Premia’s leadership team will also include Scott Maries as Chief Financial Officer and Joe Calandro as Executive Vice President, along with additional talented team members within its operating units.
Premia was advised by Clifford Chance US and Conyers Dill & Pearman. Kelso was advised by Debevoise & Plimpton. Arch was advised by Cahill Gordon & Reindel.