Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance and transportation focused investment manager, is expected to take majority control of specialty insurer Weston Insurance Holdings Corporation (WIHC).
Financial analysis firm Demotech said the move would be beneficial for both WIHC and its insurance carrier subsidiaries.
Accordingly, analysts assigned Financial Stability Ratings (FSRs) of A, Exceptional, to Weston Insurance Company and Anchor Specialty Insurance Company.
Hudson Structured Capital Management (which does its re/insurance business as HSCM Bermuda) is expected to assume majority control after working closely and cooperatively with management and current ownership.
This came about as a result of a significant capital restructuring plan, and Demotech believes the move will significantly reduce WIHC’s group leverage and improve group balance sheet strength.
“Michael Millette and HSCM Bermuda’s clients assuming majority control of the holding company to provide oversight and guidance to WIHC’s insurance company subsidiaries is a game changer,” said Joseph Petrelli, President and Co-founder, Demotech.
“The operating subsidiaries were sound and now the holding company is catching up,” he added.
WIHC also worked closely with Demotech to shape the proposed capital restructuring to assuage any concerns regarding increased levels of holding company leverage used to finance the recent acquisition and recapitalization of Anchor Specialty by WIHC.
