P&C run-off insurer Armour has announced that it has raised up to $500 million in equity commitments in partnership with an investor group that is led by Aquiline Capital Partners, to fund a new reinsurer, Armour Group Ltd.
The new reinsurance group will co-invest in global P&C run-off transactions in parallel with the group’s affiliates, and the $500 million investment will also provide expansion capital for Armour, as well as a platform to execute on the growing run-off market opportunities.
Jeff Greenberg, Chairman and Chief Executive Officer (CEO) of Aquiline, a New-York domiciled private equity firm, which led the investor group, commented; “Aquiline’s investment in Armour reflects the growing demand for run-off as an option for insurance companies that are looking to solve deteriorating reserve positions and optimize their capital.
“We are excited to partner with the highly-experienced team at Armour and believe that their ILS management capabilities provide a strong competitive differentiator. The formation of our permanent capital vehicle provides the team with the full toolkit to capitalize on the market opportunity.”
Under the terms of the transaction, the former holding company of Armour will rename itself Trebuchet Holdings, and transfer the Armour brand name to the new entity. Furthermore, Trebuchet Holdings will contribute its current P&C run-off platform to the new holding company, which includes the company’s claims management business, Armour Risk, and, subject to regulatory approvals, the group’s affiliate insurance-linked securities (ILS) Investment Management, which is to continue its existing business.
Founder and CEO of Armour, Brad Huntington, commented; “We are excited to have Aquiline as a partner as we enter our next phase of growth. Given Aquiline’s deep insurance industry experience, we believe they are an ideal partner to help us grow the team and scale our operation.”