Bermuda-based Premia Holdings Ltd, a property & casualty insurance and reinsurance group focused on providing runoff solutions, has closed $510 million in funding. The investors included Kelso & Company and Arch Capital Group Ltd. Clifford Chance US LLP and Conyers Dill & Pearman Limited advised Premia on the transaction. And, Debevoise & Plimpton LLP advised Kelso while Cahill Gordon & Reindel LLP advised Arch.
HAMILTON, Bermuda–(BUSINESS WIRE)–Premia Holdings Ltd. (“Premia” or “the Company”), a newly-formed property & casualty (“P&C”) insurance and reinsurance group focused on providing runoff solutions, announced today that it has completed a $510 million 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 Ltd. (“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.
“We are very excited to introduce a new, strongly capitalized reinsurance group focused on P&C runoff,” said O’Farrell. “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.”
Chris Collins, Managing Director of Kelso, noted, “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.”
Marc Grandisson, President and COO of Arch, commented, “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 LLP and Conyers Dill & Pearman Limited. Kelso was advised by Debevoise & Plimpton LLP. Arch was advised by Cahill Gordon & Reindel LLP.
Additional information regarding Premia may be obtained by calling Bill O’Farrell on +1 267 312 1620 or Scott Maries on +1 441 705 8697.
About Kelso & Company
Kelso has been investing in private equity for over 35 years. Kelso benefits from a successful investment track record, a long-tenured and stable investing team, and a reputation as a preferred partner to management teams and corporates. Since 1980, Kelso has raised a total of nine private equity funds, representing approximately $12 billion of capital, and has made 120 investments. Kelso has significant experience investing in financial services, having deployed approximately $1.7 billion of equity capital in the sector over the past decade, including nearly $1.0 billion in insurance and reinsurance investments. For more information about Kelso, please visit the firm’s website at www.kelso.com.
About Arch Capital
Arch Capital Group Ltd., a Bermuda-based company with approximately $8.24 billion in capital at September 30, 2016, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.