Bermuda-based insurer and reinsurer, AXIS Capital Holdings Limited, has partnered with Stone Point Credit Advisers LLC to launch Monarch Point Re, a new, Bermudian collateralized reinsurer with over $400 million of capital raised.
The more than $400 million of equity includes a $75 million investment from a subsidiary of AXIS and a $75 million investment from Stone Point Credit, the credit-investing arm of Stone Point Capital, an alternative investment firm with more than $50 billion of assets under management.
Monarch Point Re will operate in Bermuda and underwrite a diversified portfolio of casualty reinsurance business retroceded by AXIS Capital subsidiaries.
Stone Point Credit will serve as the collateralized reinsurer’s exclusive investment manager and expects to invest in a diversified portfolio of corporate credit.
AXIS says that it expects its subsidiaries to retrocede around $400 million of reinsurance written premium for the first year of the multi-year reinsurance agreement, which is effective January 1st, 2023.
The Bermuda-based re/insurer explains that the launch reflects its ongoing commitment to better serve its customers and distribution partners by expanding its capacity via third-party capital.
Christopher Harris, who previously served as Chief Executive Officer (CEO) and President of Montpelier Re, and as Chairman of Blue Capital Reinsurance Holdings, will serve as CEO of Monarch Point Re.
“Monarch Point Re benefits from the specialty underwriting capabilities of AXIS and the investing expertise of Stone Point Credit, providing a tremendous opportunity to deliver value to the market and all of our stakeholders,” said Harris.
Vince Tizzio, President and CEO of AXIS Capital, said: “The launch of Monarch Point Re further demonstrates AXIS’s ability and desire to meet the needs of our customers and distribution partners by expanding our specialty reinsurance capacity.
“Moreover, in Stone Point Credit, we are partnering with an exceptional investment manager, which aligns with our alternative capital strategy of matching the right risk with the right capital.”
Jim Carey, President of Stone Point, added: “We are excited to partner with AXIS to launch Monarch Point Re and bring together the expertise of the two firms.
“We believe Stone Point Credit’s experience managing capital for the insurance industry, combined with AXIS’s expertise in risk management, will enable us to generate substantial value for all stakeholders.”